Capital Guardian Trust Co.'s non-U.S. equity-institutional strategy gained 19.3% in 2005, according to eVestment Alliance, an Atlanta-based institutional research firm. So far this year, however, the strategy is lagging the benchmark by about 165 basis points.
In second place was Grantham, Mayo, van Otterloo & Co. LLC, New York, which moved from No. 4 in 2004 with $58.7 billion, a 36% jump. Fidelity Investments, Boston, was third with $56 billion in assets, up from No. 5 thanks to a 41% gain — the biggest jump among the top 25. Fourth was Franklin Templeton Investments, San Mateo, Calif., at $52.7 billion, up 18%, followed by AllianceBernstein Institutional Investment Management, New York, with $50 billion, a 36% rise from the previous year. Franklin Templeton slipped from third place in 2004, while AllianceBernstein moved up from sixth.
GMO benefited from "appreciation in the markets, along with appreciation of the asset class," said Ann Spruill, partner.
"We continue to see defined benefit sponsors, both public and corporate, increasing their allocation to international securities in developed countries and emerging markets," said Drew Lawton, president of Fidelity Management & Trust Co., Boston., the institutional asset management arm of Fidelity Investments.
Strong performance by Fidelity's international growth and select international strategies contributed to the asset spike in 2005, Mr. Lawton said. The strategies were up 16% and 15%, respectively, for the year ended Dec. 31, according to Morningstar Inc.
Norm Boersma, executive vice president and director of portfolio management for the Templeton Global Equity Group, a unit of Franklin Templeton, said asset growth was shaped by investors' keen interest in global equity strategies.