Uncertainty drives investment decisions
Apprehension about market conditions led many global equity managers to direct funds towards defensive blue-chip companies in 2011, according to Standard and Poor's (S&P) fund analyst Justine Gorman.
According to S&P's 2011-2012 global equities sector review, all major share markets were inconsistent and all major equity markets lost value in 2011.
Commodity price trends and projections about China's economy led to larger losses among emerging markets than developed markets, while the value of the Australian dollar led to minimal differences in returns for hedged and unhedged MSCI World Indices.
S&P rated four managers it assesses as having the strongest market capabilities (four stars) including Aberdeen Asset Management, Altrinsic Global Advisors, Vanguard Funds and AllianceBernstein.
S&P said Aberdeen has the ability to assess and manage investment opportunities efficiently through its network of regional analysts.
Altrinsic has a less constrained investment style, enabling it to manage downside protection and invest in opportunities across a broad spread of markets, according to the report.
Vanguard's index-aware approach adds value through the efficient management of cash flows and index changes, S&P said.
S&P said despite AllianceBernstein's recent staff changes, the highly resourced team "displays an unwavering commitment to the 'value' investment style that results in a disciplined 'true-to-label' value offering".
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