MONTERREY, Mexico & NEW YORK--(BUSINESS WIRE)--Fitch Ratings publishes a special report titled 'Managers with the Best Balanced Funds', which aims to identify the best balanced funds (FIRVs) in terms of the annual average return observed over a three-year period, using the risk-adjusted return (RAR) ratio as the main indicator for evaluation. Also, the report highlights 15 managers distinguished by having high-performing funds.
For this purpose, Fitch performed an analysis where it considered the FIRVs with an operating history of at least three years. In addition, for better comparability, the analysis included funds with assets under management (AuM) greater than or equal to MXN100 million and within a peer group (PG) composed of at least five funds.
The analysis mentioned above was fulfilled by 145 funds, whose AuM (MXN311,366 million) represents a high percentage (87.2%) of the total managed by the 267 FIRVs existing at the end of December 2013.
The seven PGs created for a proper relative comparison among the 145 participating FIRVs, are as follows: I. others mixed flexible (34.8%; 25 funds); II. balanced funds Mexico (29.8%; 46); III. others mixed conservative (17.3%; 32); IV. others mixed balanced (8.2%; 9); V. balanced funds global (5.7%; 16); VI. others mixed aggressive (3.3%; 8); and VII. balanced funds North America (1.1%; 9).
On the other hand, the report also mentions the FIRVs with the highest RAR for each PG, according to each group's AuM participation. Under such circumstances, 60 funds were selected, representing 48.7% of the AuM of the FIRVs.
In addition, the 145 funds that participated in the analysis registered an average annual nominal return to three years of 6%, which compares favorably with other investment options, given the volatility observed in the past. The RAR median was 0.7%. Generally, the best funds consistently registered the highest nominal and risk-adjusted returns.
In Fitch's opinion, the favorable evolution and performance of the risks and returns of FIRVs are a reflection of the development that managers have had at the same time, which have strengthened their operational infrastructure, investment process and human capital to adapt to globalization and the difficult market environment of recent years.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: Managers with the Best Balanced Funds