Peter Gillespie (top) and Kevin O’Hare
This Lazard duo has secured its first Citywire AAA rating with a fund that is underweight defensive sectors such as consumer staples and utilities but overweight more sensitive sectors such as industrials and financials.
Stock selection in financials has certainly paid off: In their fourth quarter commentary for 2017, the managers noted that Indonesian commercial bank Bank Rakyat had been one of the main drivers of performance. In the same fund commentary, they added that an underweight to telecommunications had boosted performance too.
While the fund has undoubtedly ridden the recovery in emerging markets, its performance is well above that of the market and the iShares MSCI Emerging Markets ETF.
- Sector manager ratio: 0.88
- In terms of drawdown in ranked: 5/217
The Franklin International Growth fund, which was launched in 2002, has been managed by Huber since 2014 and by Barbeau since 2008. The pair has now landed its first AAA rating for the second-best risk-adjusted numbers in the International Multi-Cap category.
The fund invests mainly in mid- and large-cap names using a bottom-up approach, with a particular focus on firms’ growth, quality and valuation.
The duo is not afraid of making off-benchmark bets, such as one of 2017’s top performers, TAL Education Group – a China-based company providing after-school tutoring. This approach has helped Huber and Barbeau stay ahead of the recent global rally, easily beating the iShares MSCI EAFE ETF over three years.
- Sector manager ratio: 0.98
- In terms of drawdown in ranked: 2/104
Catholic Investor International Equity
Kalus-Bystricky is not doing things the easy way. She and fellow managers David Hanna and Michael Vogelzang are not only trying to beat their benchmark and their peers, but must do so while ensuring stock selection is consistent with the United States Conference of Catholic Bishops’ investment guidelines. This means, among other things, avoiding companies linked to abortion and contraception.
Hanna and Vogelzang are + rated due to their performance on five other funds, while Kalus-Bystricky is only named on this fund and has achieved an AA.
For an added challenge, they have benchmarked themselves against the FSTE All World Ex-US index, which has been harder to beat of late than, say, the MSCI EAFE due to its greater weighting to emerging markets.
- Sector manager ratio: 0.55
- In terms of drawdown in ranked: 13/89