by Detlef Glow.
On March 16, 2023, Refinitiv Lipper unveiled the results of the Refinitiv Lipper Fund Awards for Switzerland in conjunction with our long-term media partner Fundplat. Unlike the last two years, the ceremony was held as a glamourous in-person event at the famous “Aura” in Zurich. The event not only marked the thirty-fourth annual Lipper Fund Awards for Switzerland, it was also held to celebrate the fiftieth anniversary of Lipper, since the company was founded in 1973.
The last five years were a very difficult period for investors in all asset types. Therefore, the Refinitiv Lipper Fund Awards will get a lot of attention from all kinds of investors, since these awards showcase the ability of a fund to deliver high risk-adjusted returns in changing market environments. This means that the winning funds and fund promoters were able to adopt their portfolios to the continuously changing and challenging market environments during the respective award periods.
Different methodologies lead to different results
Contrary to what many market observers would expect, the Refinitiv Lipper Fund Awards are not based on return numbers alone. The winners of a Refinitiv Lipper Fund Award aren’t determined by looking at the funds with the highest returns over the respective awards periods. In actuality, the Refinitiv Lipper Fund Awards are based on the Lipper Leader rating for Consistent Return. These ratings are calculated using a utility function based on the effective return over multiple non-overlapping periods—within the respective three-, five-, and 10-year horizons. The calculations over multiple periods ensure that all periods in which a fund underperforms the average of its peer group are identified. Then, Refinitiv Lipper uses a utility function based on behavioral finance theory to penalize periods of underperformance against the peer group average, with more significant weightings being given to excess returns.
From an investor point of view, the calculation methodology ensures that the winners of the Refinitiv Lipper Fund Awards are funds that have provided relatively superior consistency and risk-adjusted returns compared to a group of similar funds. Therefore, funds that receive a Refinitiv Lipper Fund Award may be the best fit for investors who value a fund’s year-to-year consistency relative to other funds in a particular peer group. A document outlining the full methodology for the Refinitiv Lipper Fund Awards can be found here.
The best mutual funds in Switzerland
The Refinitiv Lipper Fund Awards honored those funds which had the highest score in the Lipper Leader rating for Consistent Return over the three-, five-, and 10-year periods. Overall, there were 99 funds that won an award for the three-year period, although only 20 of them receive a trophy on stage. In addition, 92 funds were recognized with a Lipper Fund Award over the five-year period, and 74 funds won the prestigious trophy for the 10-year period. The complete lists of the winning funds can be found on our awards website.
Swisscanto (CH) EF Responsible CH High Quality AA CHF won the Lipper Fund Award for the Equity Switzerland category over the three-year period, while iShares SMI Equity Index (CH) D won for the five-year period, and PS CH-Swiss High Dividend-P CHF was once again the winner over the 10-year period.
Graph 1: Performance Swisscanto (CH) EF Responsible CH High Quality AA CHF vs Lipper Global Equity Switzerland 01.01.2020 – 31.12.2022 (in %)
Calculation Currency: CHF
Source; Refintiv Lipper
Equity Switzerland Small- and Mid-Cap
SaraSelect P CHF was named the Lipper Fund Award winner for Equity Swiss Small- and Mid-Cap over the three- and 10-year period, while GAM Swiss Sustainable Companies A was tops over the five-year period.
Graph 2: Performance SaraSelect P CHF vs Lipper Global Equity Swiss Small- and Mid-Cap 01.01.2020 – 31.12.2022 (in %)
Calculation Currency: CHF
Source; Refintiv Lipper
The best asset management groups in Switzerland
The group awards are divided into those for large and small asset management groups based on a regional assets-under-management split. It is not enough for a fund management company to hold just one large fund. A large management group must have at least five equity, five bond, and three mixed-assets portfolios, while a small group must have at least three equity, three bond, and three mixed-assets portfolios. The complete lists of the winning asset management groups can be found on our awards website.
Within the bond segment, the best small asset manager was Anaxis, which outperformed 43 competitors in this category. The best large bond fund manager was DNCA Investments, which beat 64 competitors in its category.
Eleva Capital outperformed its 103 opponents and was named the best small asset manager in the equity segment. Candriam won the trophy as the best large asset manager of equity funds, beating 68 competitors in terms of consistent outperformance.
There were 47 large asset managers and 50 small asset managers competing for the Lipper Fund Awards in the mixed-assets segment. While DJE won the trophy for the best small manager, the award for the best large equity manager went to SEI.
The winning groups for the overall awards were able to show an above-average risk-adjusted performance within their bond, equity, and mixed-assets products. In this category, there were 36 large groups and 11 small groups competing for the prestigious trophy. Julius Baer the award for the best small fund management group, while Goldman Sachs was once again named the best large fund management group.
As one can see from the number of fund management groups in the single categories, the Lipper Fund Awards are exceedingly competitive and recognize the fund managers that are setting benchmarks within the industry. The Awards commemorate the expertise of the collective fund management industry and the individual funds’ ability to outperform the market.
The views expressed are the views of the author and not necessarily those of Refinitiv. This material is provided as market commentary and for educational purposes only and does not constitute investment research or advice. Refinitiv cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided in this publication or from any other source mentioned. Please consult with a qualified professional for financial advice.
The Refinitiv Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers.
The Refinitiv Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60, and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Refinitiv Lipper Fund Award. For more information, see lipperfundawards.com. Although Refinitiv Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Refinitiv Lipper.
About Refinitiv Lipper Fund Awards:
For more than 30 years and in more than 17 countries worldwide, the highly respected Refinitiv Lipper Awards have honored funds and fund management firms that have excelled in providing consistently strong risk-adjusted performance relative to their peers and focus the investment world on top-funds. The merit of the winners is based on entirely objective, quantitative criteria. This coupled with the unmatched depth of fund data results in a unique level of prestige and ensures the award has lasting value. Renowned fund data and proprietary methodology is the foundation of this prestigious award qualification, recognizing excellence in fund management. Find out more at www.lipperfundawards.com.