22
Fund selector Global equity
Top ranked funds Three-year performance
top 3-year performers vs index
%
80
60
40
20
0
RAM Dynamisch
MSCI World Grs $
-20
Nov ’05 May ’06 Nov
May ’07 Nov
May ’08
27 Oct ’05 – 3 Nov ’08. Source: Morningstar
Multi Invest OP
Multi-Axxion – InCapital Taurus
top 10 funds – risk and return
25
In the three-years performance
table, one fund stands
out far ahead of its rivals:
Multi-Axxion InCapital
Taurus, managed by
German firm Axxion.
The fund has returned
41.8% over three years to
27 Oct, 2008 against a
sector average of -12.73%.
RAM Dynamisch, the
third best performer, is a
fund of funds run by DWS
Investments. It invests in
Multi-Axxion –
InCapital Taurus
Multi Invest OP
Kapitalfonds LK
Global Value G
Top Ten Classic
LODH Invest Sel
Global Eq P A
Return (%) 50 Clariden Leu
0
RAM Dynamisch
DB Pl Dynamic
SMS Ars Selecta
Aktien Plus R1C
Marathon Global
Glbl Selection
-25
Sector average
Equity B Acc
2
3 4
5 6
Standard deviation (%)
27 Oct ’05 – 3 Nov ’08. Bid to bid, $, gross income, no cap
Source: Morningstar
top 10 funds by 3-year performance
27 oct ’05 – 3 Nov ’08. Bid to bid, $, gross income, no cap. Source: Morningstar
Nov
3-year 3-year 3-year 3-year 3-year 3-year M’star Fund Dom
% chg Alpha Beta R² Sharpe volatility Ratings size (£m)
Multi-axxion – InCapital Taurus 41.8 1.03 0.83 0.69 0.18 4.12 HHHHH 10.22 lux’bourg
Multi Invest oP 26.48 0.92 0.42 0.38 0.2 2.8 HHHHH 493.76 lux’bourg
raM dynamisch 25.88 0.94 0.55 0.58 0.21 2.96 HHHH 27.72 lux’bourg
Kapitalfonds lK Global Value G 24.76 0.73 0.91 0.75 0.1 4.34 HHH 27.41 lux’bourg
Clariden leu Global Selection 14.42 0.67 0.28 0.25 0.13 2.33 HHHHH 32.43 Guernsey
Top Ten Classic 10.81 0.56 0.87 0.73 0.06 4.16 HHHHH 87.57 lux’bourg
SMS ars selecta 10.68 0.69 0.78 0.86 0.11 3.46 HHHH 16.39 lux’bourg
dB Pl dynamic aktien Plus r1C 9.61 1.22 0.95 0.6 0.18 5.02 HHHHH 31.75 lux’bourg
lodH Invest Sel Global eq P a 9.24 0.38 1.08 0.67 0.01 5.4 HHH 232.79 lux’bourg
Marathon Global equity B acc 8.85 0.11 1.05 0.87 -0.04 4.59 HHHHH N/S Ireland)
equity funds, as well as
exchange-traded funds
(ETFs) and, from time to
time, what it calls funds
with alternative investment
horizons, such as commodity
funds.
Although it is in the
global equity sector, as at
the end of September
2008 only 15.4% of the
portfolio was in equity
funds, with 45.6% in bond
funds and 35% in money
market funds.
The Kapitalfonds LK
Global Value Fund is run
by Dusseldorf-based firm
GS&P Institutional Management.
It has a strong focus
on European, and in particular
German, equities.
As at the end of September,
almost half the portfolio
was in Germany, with 16%
in the US, 19% in Japan,
8% in Canada and 7% in
the UK.
The Clariden Leu Global
Selection Fund, offered by
Swiss private bank Clariden
Leu, targets an absolute
return using a bottom-up
approach.
At the end of September,
85% of the portfolio was in
equities, with the remainder
in cash. In terms of
geography, 45% is in the
US, with 18.5% in Canada
and 11.8% in the UK.
Management of the fund is
outsourced to Swiss asset
management firm Kraemer,
Schwab & Co.
Multi Invest OP is managed
by Oppenheim
Pramerica, a joint venture
between private bank Sal
INTerNATIONAL ADVISer [www.international-adviser.com] December 2008
Oppenheim and Prudential
Financial.
The fund invests in
both growth and value
stocks and across the
market capitalisation spectrum,
with the ability to go
up to 100% in cash or
money market instruments
during difficult market
conditions.
During stock market
growth phases, the fund
has a target asset allocation
of 10% in each of European
large cap, European small
cap, US large cap, US mid
cap value, Swiss mid cap,
Canadian large cap, UK
small cap, Japanese large
Fund selector’s choice
Jacqueline Aldhous, head of offshore
research, Old Broad Street Research
A major driver of the funds’ outperformance
in the three-year group has been their multiasset
strategies which include fixed income
securities and, for several funds, exposure to
derivatives and/or commodities.
Although not listed here, an attractive offering in the single
strategy global equity space is the Morgan Stanley INVF Global
Brands fund run by Hassan Elmasry.The fund’s concentrated and
unconstrained portfolio is the result of thorough bottom-up analysis;
the manager seeks firms with strong franchises and cash flows.
This has typically led to a bias towards consumer staples. Its focus
on high-quality balance sheets and sustainable earnings has been
strongly rewarded of late. The fund’s focus on companies with strong
global brands makes it an interesting proposition in the current more
challenging environment.
Another fund we would point out, although not appearing here
is the Mellon Global Intrepid Fund, run by Alex Stanic. This largecap
growth best-ideas fund is constructed using a thematic and
macroeconomic framework that sets the scene for international
variables; the investment philosophy is that a global context is critical
to understanding companies, markets and economies.
Within this context, the manager selects the stocks in which
he has greatest conviction with little regard paid to the benchmark.
Long-term performance has been boosted by the manager’s
willingness to take fairly aggressive positions in stocks where
he has a high level of conviction.
cap, Hong Kong large cap
and German mid cap.
Marathon Asset Management,
which runs the
Marathon Global Equity
Fund, is a London-based
global equity specialist.
The fund is managed by
six portfolio managers,
with the firm’s co-founder
Jeremy Hosking responsible
for setting asset
allocation.
The portfolio is highly
diversified, with anywhere
between 250 and 450
stocks in 25 to 30 countries.
Emerging markets
exposure is limited to 25%
of the portfolio.
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