Arrowstreet rates as top quant manager
Arrowstreet has emerged as the standout performer in ratings house Standard & Poor’s International Equities Large Cap Quantitative Funds analysis.
The ratings house described the international equities large cap quantitative funds peer group has being highly competitive with successful approaches having been replicated over time.
S&P Fund Services analyst John Huynh said it was on this basis that the ratings house highly rated those managers that had been able to stay ahead of the pack with unique insights and effective proprietary research.
He said that the standout manager in the peer group was Arrowstreet and this had warranted S&P reaffirming the manager’s five-star rating.
Huynh said the five-star rating had been established on the back of the manager having performed impressively through the global financial crisis “due to its robust process that delivered consistent alpha during different market environments”.
While Arrowstreet held its top S&P ranking, the ratings house downgraded two Invesco funds from four stars to three stars, arguing that the manager would benefit from a more integrated research approach between its US and European-based teams.
Looking at the sector as a whole, Huynh said that the quantitative peer group had struggled to deliver consistent alpha over recent years in an environment that was unusually challenging for quantitatively driven strategies.
AUTHOR
Mike Taylor
Recommended for you
Far too few wealth managers are capitalising on the opportunity presented by disruptive technology to deliver personalised investment solutions to the mass affluent demographic, according to PwC.
With over half of advisers using managed accounts, HUB24’s head of managed portfolios has unpacked the benefits driving their usage and how they can be leveraged by advice practices.
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
ASX-listed platforms HUB24, Netwealth, and Praemium have used their AGMs to detail how they are using artificial intelligence to improve their processes and the innovative opportunities it presents.
