On March 5, 2024, LSEG Lipper announced the winners of the prestigious LSEG Lipper Fund Awards Europe 2024 at the famous Underglobe in London.
This in-person event gathered investment professionals from all over Europe who wanted to celebrate their success over the last three, five, and 10 years with the other winners, industry experts, and journalists.
Looking backward, it can be concluded that the last five years were very challenging for all types of investors. Starting with the market turmoil in Q4 2018, the COVID-19 pandemic with lockdowns, disrupted delivery chains, quantitative easing measures taken by central banks around the globe, and the war in Ukraine. The high inflation rates which caused a complete turnaround of central bank policies were another challenge, especially within the bond sector. This means the winners of the LSEG Lipper Fund Awards Europe 2024 had to weather several storms which were hitting the capital markets to achieve an outstanding risk-adjusted return which qualified them to become a winner for their respective Lipper global classifications over three, five, or 10 years.
Different methodologies lead to different results
Contrary to what a number of market observers would expect, the LSEG Lipper Fund Awards are not based on return numbers alone. This means the winners of a LSEG Lipper Fund Award aren’t determined by looking at the funds with the highest returns over the respective awards periods. In actuality, the LSEG 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 LSEG Lipper uses a utility function based on behavioral finance theory to penalize periods of underperformance against the peer group average.
From an investor point of view, the calculation methodology ensures that the winners of the LSEG 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 LSEG 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.
In contrast to the single country awards, where all funds from the eligible asset classes with a sales registration in the respective country are taken into consideration, the fund universe for the European fund awards is composed of funds with UCITS status which are registered for sale in at least three out of 31 European countries composed of the 27 EU member state countries and the four EFTA countries.
A document outlining the full methodology for the LSEG Lipper Fund Awards can be found here.
The best mutual funds in Europe
There were 5,485 mutual funds eligible for a LSEG Lipper Fund Award in Europe. Out of the respective fund universe, the fund awards honor 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 105 funds that won an award for the three-year period. Also, 101 funds were recognized with a LSEG Lipper Fund Award over the five-year period, and 84 funds won the prestigious trophy for the 10-year period. The complete lists of the winning funds can be found on our awards website.
Equity Europe
Magallanes Value Investors UCITS – European Equity R won the LSEG Lipper Fund Award for the Equity Europe category over the three-year period, while BlackRock Strategic Funds – BlackRock European Unconstraint Equity Fund A2 PF EUR won for the five-year period and Comgest Growth Europe Fund EUR Accumulation Class was tops over 10 years.
Graph 1: Magallanes Value Investors UCITS – European Equity R vs Lipper Global Equity Europe 01.01.2021 – 31.12.2023 (in %)
LSEG Lipper Fund Awards Europe 2024
Calculation Currency: EUR
Source; LSEG Lipper
Equity Europe Income
Amundi Funds European Equity Sustainable Income – A2 EUR SATI (D) took the LSEG Lipper Fund Award for the Equity Europe Income category over the three-year period, while CT (Lux) European Growth & Income A Inc EUR won for the five-year period and Guinness European Equity Income Fund class C EUR Acc was named the best fund over the 10-year period.
Graph 2: Amundi Funds European Equity Sustainable Income – A2 EUR SATI (D) vs Lipper Global Equity Europe Income 01.01.2021 – 31.12.2023 (in %)
LSEG Lipper Fund Awards Europe 2024
Calculation Currency: EUR
Source; LSEG Lipper
Equity Europe Small- and Mid-Cap
Alken Fund Small Cap Europe – R was named the LSEG Lipper Fund Award winner for Equity Europe Small- and Mid-Cap over the three-year period, while E.I. Sturdza Funds plc Strategic European Silver Stars Fund A EUR Share Class won over the five-year period, and Belfius Equities – Europe Small & Mid Caps – C CAP was tops over the 10-year period.
Graph 3: Alken Fund Small Cap Europe – R vs Lipper Global Equity Europe Small- and Mid-Cap 01.01.2021 – 31.12.2023 (in %)
Calculation Currency: EUR
Source; LSEG Lipper
Bond Europe
Within the bond classifications, New Millenium – Augustum High Quality Bond A won once again the LSEG Lipper Fund Award for the Bond Europe over the three- and five-year periods, while Franklin European Total Return Fund A (acc) EUR was named the best fund over the 10-year period.
Graph 4: New Millenium – Augustum High Quality Bond A vs Lipper Global Bond Europe 01.01.2021 – 31.12.2023 (in %)
Calculation Currency: EUR
Source; LSEG Lipper
The best asset management groups in Europe
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 49 competitors in this category. The best large bond fund manager was again Jupiter, which beat 67 competitors in its category.
Alken outperformed its 111 opponents and was named the best small asset manager in the equity segment. Sparinvest won the trophy as the best large asset manager of equity funds, beating 82 competitors in terms of consistent outperformance.
There were 61 large asset managers and 38 small asset managers competing for the LSEG Lipper Fund Awards in the mixed-assets segment. While Capital at Work won the trophy for the best small manager, the award for the best large manager went once again to Lazard.
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 45 large groups and 10 small groups competing for the prestigious trophy. ABN Amro won the award for the best small fund management group, while Sparinvest was named the best large fund management group.
As one can see from the number of fund management groups in the single categories, the LSEG 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 LSEG. This material is provided as market commentary and for educational purposes only and does not constitute investment research or advice. LSEG 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.
Disclaimer
The LSEG 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 LSEG 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 LSEG Lipper Fund Award. For more information, see lipperfundawards.com. Although LSEG Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by LSEG Lipper.
About LSEG Lipper Fund Awards:
For more than 30 years and in over 17 countries worldwide, the highly respected LSEG 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.
