Fund Management

Swiss Private Banks Dominate Asset Management Survey

Contributing Editor 24 May 2006

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Three Swiss private banks – Vontobel, Pictet and Bank Sarasin – have taken the top three places in a performance league table compiled by ED...

Three Swiss private banks – Vontobel, Pictet and Bank Sarasin – have taken the top three places in a performance league table compiled by EDHEC, a business school, and EuroPerformance, a European fund rating agency.

The “Alpha League Table” showed first place was shared between Vontobel and Pictet, with an alpha frequency of 29.9 per cent and an average alpha rate of 3.1 per cent. Bank Sarasin took third place.

The league table showed that specialists and private banks dominate the top places in the rankings with investment management oriented towards emerging markets and sector funds.

The Europerformance rating methodology differs from the conventional systems used by Morningstar and S&P because the asset manager's retail funds are evaluated solely on the basis of the excess return − or "alpha" − generated by the portfolio. Market performance − or "beta" − is completely disregarded.

All of the funds which are awarded four or five stars are then included in an overall evaluation of the asset manager. The average value of these funds provides the total score.

The evaluation by Europerformance is also risk-adjusted.

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