THEAM, the indexed, protected and model-driven investment management specialist ofBNP Paribas Investment Partners, won first prize in the Global Equities category at the annual amLeague-NEWSManagers awards, recognising its low-volatility, smart-beta investment strategy for a competition-beating 12.09% gain over the whole of 2016.
The latest award marks the third year in which THEAM leads in the amLeague after wins in 2015 in the Eurozone Equity and Europe SRI categories and in 2014 in the Euro Equities and Europe SRI categories.
Denis Panel, THEAM CEO
We are honoured to receive this prize for best Global Equities manager of 2016. Once again, the challenging market environment put equity investment management to the test and allowed us to demonstrate that our approach works and that our Pure Low Volatility strategy can achieve its objectives despite highly volatile markets.
The strategy implemented for amLeague’s Global Equities virtual mandate replicated the approach of BNP Paribas Flexi I Equity World Pure Low Volatility. This smart-beta fund is actively managed using the low-vol anomaly, which states that equities with a low price volatility offer, on average and over the long term, a risk-adjusted return that is higher than that of high-volatility, and thus often riskier, equities. Low-vol funds had EUR 1.7 billion under management as of 31 December 2016.
amLeague award methodology
The amLeague awards cover Eurozone Equities, European Equities, Europe SRI Equities, Global Equities and Multi-Asset Class. Its best risk/reward methodology is based on guidelines by a small group of Club amLeague member investors. For equities, it uses Jensen’s measure in which the portfolio’s return net of the risk-free rate is compared to the performance of the benchmark net of the risk-free rate. The ranking of the best risk/reward is based on the Black-Treynor ratio. For the Multi-Asset Class award, it uses the Sharpe ratio.
Past performance or achievement is not indicative of current or future performance. Performance is calculated on the basis of notional (or ‘paper’) portfolios. Performance figures cited are before fees and in euros, but after brokerage fees.
Investments are subject to market fluctuations. The value of investments and the income they generate are subject to both gains and losses, and it is possible that investors will not recover their full investment.
