20
Fund selector thematic
Top ranked funds Three-year performance
Hang Seng Investment (not
to be confused with the
index of the same name)
dominates here with three
Cayman Islands-domiciled
actively managed funds
linked to Chinese financials,
consumer goods and services
and property firms.
This is testament to both
the skill of the fund managers
but also the all-round
consistency in the rise of
China as a global powerhouse
in the face of diminishing
returns from the
MSCI World Index.
Domiciled in Ireland, the
Alpro Growth Fund is fielded
by alternatives specialist
Fund selector’s choice
John Husselbee, chief executive,
North Investment Partners
The dominate theme of gold and precious
metals should come as no surprise to
investors. The volatility in both bond and
equity markets as well as a decline in the
value in the dollar has encouraged investors
to take some cover in the safe-haven status of gold. Furthermore ,we
live in a world of fiat currencies, paper money, and the gold standard
is just a distant memory. In this global crisis, no government nor
central bank wants a strong currency to hinder any export driven
recovery in growth.
Amongst the names in this top ten, Investec provides investors
with a solid and dependable household name to seek exposure to
this sector of the equity market. Predominantly the GSF Global Gold
Fund seeks to capture capital growth through investing in companies
involved in the mining of gold. The manager will also invest elsewhere
in the mining of other precious metals, the current fact sheet shows
exposure to platinum, silver and copper.
The fund management team is based in South Africa, where
Investec has firm roots, a region which is rich in natural resources
and regarded as a leading commodity market. Whether we will see
the gold price rise above $1,000 again will be dependant upon the
global macro economy, the strength of the dollar as well as supplyand-demand
factors of the precious metal. Production has been in
decline as the necessary capital expenditure has not been maintained
in recent years. With further economic and political uncertainty ahead,
gold will be a necessary diversifier in a balanced portfolio.
Alpro Funds Management.
The fund seeks to capitalise
on long-short opportunities
in the technology sector by
exploiting security inefficiencies
and shifts in company
fundamentals. Its goal
is to deliver strong riskadjusted
returns over a full
market cycle.
The rest of the table is
characterised by a strong
showing from gold and
precious metals-related
funds. Over 12 months
returns have been mixed,
despite investors flocking
to the asset class as a safe
haven from the downturn.
The pack is led by
Aliquot Gold Bullion, which
is marketed by Old Mutual
International but with the
underlying fund run by
Castlestone Management.
Investec’s Global Gold
Fund, which is run by
Bradley George and Daniel
Sacks, is one of the largest
funds in this asset class.
The fund has the freedom
to invest in equities around
the globe as well as derivatives.
As at 30 June, 2009
its largest long positions
were in Canada, South
Africa and the UK. Gold
producers make up more
than three-quarters of the
fund’s holdings, with the
rest split between platinum,
silver and copper.
Real estate as an asset
class has had a torrid time,
so it is perhaps surprising
to see the BVI-domiciled
Brandeaux Euro Fund in
the top ten. While threeyear
performance is respect-
top 10 thematic funds by 3-year performance
top 10 funds – risk and return
-30 Sector average
3
6 9
Standard deviation (%)
12 15
To 22 Jun ’09. Bid to bid, $, gross inc, no cap. Source: Morningstar
able, over 12 months the
fund is in negative territory,
though it has retained its
first quartile ranking held
in 2007-08.
The product invests in
UK ground rents and residential
properties, and
aims to deliver consistent
annualised positive returns
of 7% to 8% while maintaining
a low volatility performance.
As the fund is
invested in sterling-denominated
assets, a currency
hedging programme is
employed to minimise the
effect of fluctuations in the
exchange rate of sterling
against the euro.
Earlier this year, Brandeaux
re-opened its Student
Accommodation Fund with
a new share class after it
halted redemptions at the
end of 2008. The product
was originally introduced
in June 2000 and is currently
listed on the Irish
Stock Exchange.
INtERNAtIONAL ADVIsER [www.international-adviser.com] August 2009
Return (%)
90
60
30
0
Alpro Growth A Acc
Brandeaux
Euro
OMGB Aliquot
Gold Bullion
OMG Aliquot
Gold Bullion
HS Consumer
Sec Flx Pow FD A1
LCF Roth Prifund
Glbl Gold & PM A
top 3-year performers vs index
100
%
50
0
-50
Hang Seng Property
Sector Flexi Pow A Acc MSCI World
Jun ’06 Dec Jun ’07 Dec Jun ’08
19 Jun ’06 – 22 Jun ’09. Source: Morningstar
Hang Seng Financial
Sector Flex Pow A
Hang Seng Property
Sector FlexiP A Acc
Share Gold
Investec GSF
Glbl Gold A Inc $
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)
hang Seng Finacial Sector Flexi pow a 82.4 2.63 1.26 0.59 0.13 10.11 HHHHH 15.18 Caymans
hS Consumer Sector Flexi pow Fd a1 58.13 1.96 1.05 0.51 0.09 8.98 HHHHH 25.53 Caymans
hang Seng property Sector Flexi p a acc 54.26 2.31 1.23 0.58 0.1 9.89 HHHHH 13.84 Caymans
alpro Growth a acc 50.81 1.68 0.54 0.33 0.18 5.71 HHHHH 21.08 Ireland
OMGB aliquot Gold Bullion 42.2 1.51 0.07 0 0.15 6.7 – 7.22 Guernsey
OMG aliquot Gold Bullion 37.04 1.41 0.07 0 0.14 6.69 – 2.13 Guernsey
Share Gold 36.82 2.19 0.88 0.16 0.05 13.54 HHHH 24.28 Lux’bourg
Brandeaux euro 33.48 1.07 0.36 0.36 0.17 3.63 – N/S BVI
LCF roth prifund Global Gold & pM a 31.98 1.75 0.71 0.17 0.06 10.71 HHHH 23.21 Lux’bourg
Investec GSF Global Gold a Inc $ 29.1 1.88 1 0.27 0.04 11.82 HHHH 143.5 Lux’bourg
19 Jun ’06 – 22 Jun ’09. Bid to bid, $, gross income, no cap. Source: Morningstar
200
150
HS Consumer Sector
Flexi Pow FD A1
Hang Seng Financial
Sector Flexi Pow A
Dec
Jun ’09
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