Some 28% of 616 active UK and European funds which have achieved a Morningstar ‘People Pillar’ rating of Above Average or High have a female manager on their roster, according to data from Morningstar.
However, only 19% of these strategies are female led, and a further 55% adopt a team-based approach. The remaining 26% of funds have a listed female fund manager, but a male named lead manager.
Morningstar’s People Pillar rating is based on its analysts’ opinion on a fund manager’s talent, resources and tenure. It combines qualitative assessment with basic data including team experience, turnover, analyst responsibilities, compensation structure, and portfolio manager ownership. It accounts for 44% of the Morningstar Analyst Fund Rating overall.
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There are a total of 21 lead female portfolio managers running 33 highly-rated funds. In some instances, some funds can obtain different ratings but be run by the same manager, depending on their strengths relative to the fund’s aims and process.
Of these, seven female lead-managed funds obtained a ‘High’ People Pillar rating. They are run by three fund managers: Marie Anne-Allier heads up the Carmignac Sécurité and Carmignac PF Carmignac Sécurité funds; Sonali Pier manages the PIMCO GIS Diversified Income fund; and Louisa Lo runs the Schroder ISF China Opportunities, Greater China, Taiwanese Equity and Emerging Asia funds.
A total of seven funds on the 33-strong list also achieved a Morningstar Gold Medalist Rating, which is awarded to the top 15% of actively-managed funds within their respective Morningstar categories. Alongside Lo’s four aforementioned funds and Pier’s diversified income fund, Aisa Ogoshi’s JPMorgan Funds Pacific Equity and Clare Hart’s JPM US Equity Income also made the grade.
Morningstar’s research team said: “Women have been making their mark in portfolio management for some time despite their relatively low representation in the space.
“In honour of International Women’s Day, Morningstar analysts have identified several lead female portfolio managers who manage funds available for sale in the UK and earn the High or Above Average People Pillar ratings.”
Clare Hart
A particular favourite among the team is JP Morgan’s Clare Hart. Hart, who has been at the helm of JPM US Equity for almost 20 years, has been described by Morningstar as “one of the industry’s most impressive managers”.
From August 2004 through to the end of January 2024, the fund has achieved an annualised return of 11.1% in sterling terms, relative to 10% for the Russell 1000 Value index and 8.5% for its US large-value Morningstar Category peers.
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The research team said: “Her contribution to the US value franchise at JPMorgan is marked: She has brought stable leadership to the strategy and skillfully led its execution.
“Solid defence in bear markets along with the avoidance of value traps have been features of the strategy under Hart.”
The manager is due to retire later this year, however, although Morningstar believes the fund will “continue benefiting from the deep and experienced value team that Hart has built and the investment approach she has honed across her career”.
Paola Binns
Elsewhere, the team is particularly positive on Paola Binns’ expertise, describing her as “one of the most experienced portfolio managers in the sterling corporate credit space”.
Having spent more than 35 years investing in bonds, Binns joined Royal London Asset Management in 2007 as a fund manager. She was appointed head of sterling credit in 2021.
Binns previously worked at Credit Suisse Asset Management and has invested across European corporate bonds, government bonds, and emerging market debt.
“Through her strong analytical capabilities, she has been able to add value and successfully manage research-intensive bottom-up-driven corporate bond strategies,” Morningstar’s research team said. “Her strategies have a bias toward secured bonds within sectors such as covered bonds, real estate, social housing, and structured bonds. There is also emphasis on strong covenants and securitized structures.
“Binns has been lead manager for Bronze-rated Royal London Short Duration Credit fund since its inception in November 2013. The absolute and risk-adjusted return profile of the fund compares very favourably against its benchmark and peers with strong security selection being the main driver of outperformance.”
Royal London Short Duration Credit has outperformed its Morningstar sector average during nine out of the last ten calendar years, having achieved top-decile returns during eight years of the last decade.
Catherine Stanley
Finally, Morningstar’s research team referenced Catherine Stanley as a particularly impressive fund manager, having run UK equity strategies for some 30 years.
She currently heads up the CT Responsible UK Equity and Bronze-rated CT Responsible UK Income funds for Columbia Threadneedle.
Stanley had been with BMO since 2000, which was acquired by Columbia Threadneedle in 2021. She previously spent nine years at Framlington managing UK small-cap portfolios for retail and institutional investors.
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Morningstar said: “Stanley’s prior experience in smaller companies is beneficial, as many companies at the larger end of the UK market are excluded from the investable universe on sustainability grounds. Stanley has achieved strong and consistent returns for investors.”
Since becoming lead manager on CT Responsible UK Equity, the fund has achieved an annualised return of 9.1%, outperforming its FTSE All-Share benchmark and its average peer in the UK flex-cap equity category by 1.1% and 0.7% respectively, each year.
Morningstar adds: “Stanley’s strong analytical and leadership skills have allowed her to become an influential stakeholder at Columbia Threadneedle, where she also holds the roles of head of global small cap and co-head of UK equity, as well as the lead portfolio manager on CT Global Small Cap Equity strategy.”
