DARIEN, Conn. — Wellington, Fidelity, PIMCO and Alliance dominated the fourth-quarter "performance quality" rankings in the Quarterly Institutional Product Review published by Casey, Quirk & Acito LLC, Darien.
Products run by these firms showed up most often in the top 10 lists of the report's 27 institutional product peer groups, which include U.S. and non-U.S. equity and fixed income. Together, these four managers served up 10% of the report's top strategies, as ranked by performance quality.
This quality measure — a combination of three-year investment returns and the level of style and risk consistency — "tells more about a product than simply performance," said Kevin P. Quirk, CQA principal. These "more sophisticated areas of performance," Mr. Quirk said, provide a better gauge of "whether a manager will meet expectations of buyers going forward."
Returns account for 60% of performance quality scores, with style and risk amounting to 20% each. The study looks at investment performance over three years because longer time periods allow for a better understanding of a manager's quality and skill, Mr. Quirk said.
Nine strategies run by Wellington Management Co. LLP, Boston, were among the top 10 in the report's Performance Quality Score league tables, including five non-U.S. equity products. Fidelity Investments, Boston, boasted seven strategies, six of which were fixed income, on the top 10 lists. Pacific Investment Management Co., Newport Beach, Calif., and Alliance Capital Management LP, New York, each posted five strategies in the report's top "performance quality" rankings for the fourth quarter.