February 2020, Publication

“Top 10 report” of AF Advisors

In the semi-annual “Top 10 report” of AF Advisors, we provide an overview of the asset classes and rank funds that are available for sale for retail investors in the Netherlands.

The past six months have been marked by the trade dispute between the US and China. This created a lot of uncertainty in the market. This seems also to have had an impact on retail investments in equity funds: the first half of 2019 was characterized by an outflow in all asset classes. It seems that retail investors are taking less risk, which may explain the inflow in fixed income categories. However, their timing was not optimal, as US stock indices reached a new all-time high last week. The increased volatility offers an active manager more opportunities to add value. This also explains the large number of newcomers, especially in the equity categories. The growth in the number of passive funds available for the Dutch market is stagnating, but the market share of passive (versus active) continues to increase (in line with the observed trend). Existing passive funds therefore continue to gain market share.

Morgan Stanley dominates in the two largest share categories: Global Large Cap Equity and US Large Cap Equity. Morgan Stanley has the two highest rated funds in both categories. The Kempen (Lux) Euro Credit fund has been out of the top ten for the first time since we made these reports. This is mainly due to the outflow and the relatively high costs of this fund. Robeco is strengthening its place in the High Yield category and is now occupying the top two places with their High Yield Bonds fund and the QI Dynamic High Yield fund, a strategy that invests quantitatively in credit default swaps.

Top 10 ranking

The Top 10 ranking is based on an analysis taking into account several qualitative and quantitative factors. These include gross returns, Sharpe and Sortino ratio, total expense ratio, local support, availability and completeness of information, the fund’s consistency in our rankings, consistency of the fund managers and cash flows of the fund. AF Advisors does not distinguish between active or passive managed funds.

For each asset class, we present an overview of some key data to provide better insights into the asset class. For all the asset classes we show information on the number of funds in the asset class, the concentration of the asset class and the average cost level. We also show the benchmark that we use in our analyses of the asset class. In addition, we provide four different graphs:

– Asset class size & cash flow

– Return dispersion

– Volatility dispersion

– Share of index funds

More information and the complete top 10 report can be read by clicking on the pdf button at the bottom of the page.

July 2020
Top 10 report Q2 2020
February 2020
Asset-backed securities deserve a place in the portfolio