German asset managers dislodged some of the world’s biggest investment managers to dramatically improve their showing in Scope’s 2018 fund-quality league table.
There was only one German manager in Scope’s 2017 ranking of fund quality among large asset managers (i.e. those with 25 or more funds available in the German market). That was Deka, which ranked 10th.
In just a year, Deka has moved up to sixth place. Metzler showed a meteoric rise, however, rising from 32nd to joint second this year alongside Investec; both had 14 of their 25 funds (56%) receive A and B ratings from Scope. Union Investment ranked 7thand Allianz Global Investors 10th.
Meanwhile, five mega US asset managers – Goldman Sachs AM, State Street, Legg Mason, JPMorgan and Invesco – fell out of the top 10. The number one position is held by Austrian fund manager KEPLER-FONDS, with a 62% top-rating score.
The increased presence of German managers in the top 10 is significant because the quantitative ranking tends to favour foreign managers, which generally allow only a fraction of their funds – and their most successful – to be distributed in Germany. German managers, on the other hand, are ranked on their entire product offering.
Among asset managers with few than 25 funds distributed in Germany, Comgest lost its top position in Q1 2018, falling to third behind fellow French manager DNCA Finance and Luxembourg-domiciled Sparinvest.
Note: Scope rates around 5,900 investment funds (UCITS) authorised for distribution in the German market managed by 313 asset managers. The fund-quality league table ranks asset managers according to the proportion of funds with A and B Scope ratings. The rating reflects, among other things, the long-term earning power and stability of fund performance as well as the risk of loss and timing risk.