Dear colleagues,
For the year, with markets having risen strongly across most equity asset classes, the relative performance figures proved more challenging: four managers outperformed, seven underperformed, and one performed in line.
In December, managers generated alpha in eight of eleven Global Industry Classification Standard sectors, while three (plus cash) created headwinds.
Industrials, energy, consumer staples, and communication services were the most fertile hunting grounds; information technology (IT), materials, and health care generated the most drag.
For the year, they generated alpha in seven of the eleven sectors. Calls in industrials and financials were easily the most profitable.
Returns in IT, the strongest absolute sector this year, created the greatest relative headwinds. Cash was also a drag -- unsurprisingly in such a strong year for equities.
Our global, emerging market, and Japanese managers generated better relative returns in 2019 compared to our managers in the US and Europe.
Internal and external versions are available on our Open Architecture corner.
Best regards,
Your Open Architecture team (1330)
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