Operating in very challenging market conditions, a handful of fund managers and investors have distinguished themselves from their peers and emerged as winners in The Asset Triple A Fund Management and Investors Awards 2022.

The year 2021 was a tough one for the industry. There was much volatility and uncertainty in the market due to fresh Covid outbreaks, the prospect of rising interest rates, and geopolitical tensions. But whether in a bull or bear market, fund managers must beat their respective benchmarks to prove their worth.

A total of 344 funds from fund managers belonging to about 40 asset management companies participated in The Triple A Fund Management and Investors Awards 2022.

During the review period for the awards, The Asset board of editors pored over submitted data and public information about the funds and their managers while conducting pitch calls with representatives of the participating companies and their clients. Also, the editors looked more closely at the Sharpe ratio and Information ratio of a fund in order to measure how good a fund manager is at beating the benchmark of their fund. These ratios also allow for an apple-to-apple comparison of the funds.

The Sharpe ratio compares the risk-adjusted returns to the risk-free rate, while the Information ratio measures the risk-adjusted returns relative to a certain benchmark. In general, an Information ratio ranging from 0.40-0.60 is considered quite good. Information ratios of 1.00 for long periods of time are rare depending on the asset class.  A Sharpe ratio between 1.0 and 2.0 is considered good, while a ratio between 2.0 and 3.0 is very good.

By looking at the risk-adjusted return of the funds through the lens of the Sharp ratio and Information ratio, our editors were able to have an indication of how much return per unit of risk a fund manager is achieving for the fund.

For private equity fund of funds, The Asset board of editors looked at the Internal Rate of Return (IRR). which gives an indication of the profitability of potential investments.

In previous years, when the fund managers were riding on a bull market, most investors were satisfied to just look at the gross return of a fund, which does not indicate how much risk was taken to achieve that return. As long as the investors were making money, there was relatively little attention paid to risk-adjusted returns. But with market conditions deteriorating in 2021, investors must assess fund performance in a more discerning manner.

It is in this context that we announce the winners of The Asset Triple A Fund Management and Investors Awards 2022.

INVESTOR OF THE YEAR

Pension Fund of the Year

Asia

National Pension Service

The National Pension Service (NPS) of Korea achieved good financial results with a Sharpe ratio of 0.8 and an Information ratio of 1.23, outperforming the benchmark. It also posted an 11% growth in assets under management (AUM) to US$740 billion and is also developing its ESG investment strategy.

Fund Manager of the Year

ASIA

Private Equity, Fund of Funds

Doug Coulter, LGT Capital Partners

LGT Capital Partners achieved an IRR of almost 30% based on three private equity funds of funds that it manages, outperforming the index (MSCI Asia-Pacific Index) which posted an IRR of 18% during the awards period. LGT also benefits from diversification because of its fund of funds format. It is also focused on enhancing the sustainability of its portfolio.

By Country/Territory

CHINA OFFSHORE

Multi-Asset

Zhong Linlin, CICC HK Asset Management

CICC HK NOAR Pro

The CICC HK NOAR Pro fund has a Sharpe ratio of almost 1.87, one of the highest in the China offshore market during the awards period. It posted a 78% growth in AUM to US$15 billion. The fund is based on CICC’s Global Nowcasting Asset Rotation (NOAR) strategy which leverages proprietary quantitative modelling combined with alternative data analysis.

Hedge Fund

Li Zimu and Chen Zheng, Yongan Guofu Asset Management (Hong Kong)

Sudi Fund SP

The Sudi Fund, a hedge fund designed for ultra-high-net-worth investors, has a Sharpe ratio of over 1.20. It posted an impressive AUM growth of 140% to US$87 million during the awards period.

TAIWAN

Equity

Calvin Hsu, Nomura Asset Management

Nomura Taiwan Small Cap Fund

The Nomura Taiwan Small Cap Fund is the best performing small-cap equity fund in Taiwan during the awards period based on its Sharpe ratio of 2.0 and Information ratio of 2.0. The fund posted a 74% AUM growth to US$16 billion. The fund uses a flexible asset allocation strategy that allows the fund manager to act decisively is response to market conditions.

For a full list of winners please click here