Top ranked funds Newcomers
The newcomers list is well
diversified with funds operating
in finance, energy,
consumer goods, biotechnology,
real estate and
healthcare all represented
in the top ten.
In terms of passive
products, DB X-trackers
dominates with its funds
linked to the Dow Jones
Stoxx 600 Index.
A notable entrant is the
Jersey-domiciled feeder for
Philip Gibbs’ Jupiter Financial
Opportunities Fund.
Daniel Vaughan, lead analyst
on global sector and
global thematic funds at
S&P Fund Services, believes
Gibbs’ extensive experience
has been of great benefit,
with the fund still coming
out on top among active
managers despite the torrid
events impacting the banks
over the past year.
He explains that Gibbs
was not invested in UK and
US banks for some time,
despite these dominating
the index, and was avoiding
anything with global
capital markets exposure.
“Gibbs was out of the
banks for 12 months or
more before the financial
crisis hit and was very swift
to position his portfolio
defensively with a lot of
cash (in yen, as a currency
play) and US treasuries,
and was shorting the Euro
Bank index futures,” he
says. “He managed to produce
positive return against
the benchmark, which was
down more than 50%.”
Barclays Power Select
Income and Triodos Renewables
Europe funds are
both linked to the energy
sector. The latter provides
equity and mezzanine capital
for renewable energy
projects throughout Europe
and invests in proven technologies
such as wind
onshore, solar PV, solar
thermal, small hydro and
clean biomass. The main
aim of the fund is to contribute
to the production of
renewable energy as a
financial investor.
Biotechnology has benefited
from being the big-
gest recipient of US venture
capital money in the
second quarter of 2009.
According to the MoneyTree
report by the National
Venture Capital Association
and Pricewaterhouse-
Coopers, venture capitalists
put $3.67bn into 612
separate companies or
deals during this period.
Julius Baer’s Biotech
23 Jun ’08 – 22 Jun ’09. Bid to bid, $, gross income, no cap. Source: Morningstar
Fund selector thematic
top 10 thematic funds with less than a 3-year but at least a 1-year track record
1-year 1-year 1-year 1-year 1-year 1-year Launch Fund Dom
% chg Alpha Beta R² Sharpe volatility date size (£m)
dB X-trackers dJ Stoxx 600 BS 0.29 -0.31 -1.38 0.62 -0.01 9.56 25 Jan ’08 52.53 Lux’bourg
Jupiter Financial Opportunities Feeder -6.06 0.03 0.18 0.11 -0.06 3.05 3 Jul ’06 1.57 Jersey
Barclays power Select Income a -8.35 -0.09 0.12 0.18 -0.14 1.53 23 Feb ’07 7.95 Ireland
Triodos renewables europe r -8.38 -0.03 0.21 0.26 -0.1 2.22 20 Jul ’06 22.93 Lux’bourg
UBS (Lux) Inst as Cons ra $ -8.94 0.25 0.62 0.61 -0.05 4.31 15 Feb ’08 9.14 Lux’bourg
JB Biotech B chf -9.77 0.24 0.63 0.63 -0.06 4.31 31 Jan ’08 7.29 Lux’bourg
Wallberg real estate p -10.04 -0.08 0.19 0.23 -0.12 2.17 16 Nov ’07 85.32 Lux’bourg
dB X-trackers dJ Stoxx 600 hCS € -10.99 -0.33 -0.45 0.2 -0.05 5.43 4 Feb ’08 5.1 Lux’bourg
rS $ Blackrock World healthscience $ -12.63 -0.03 0.33 0.33 -0.1 3.08 30 May ’08 N/S IoM
aSI II Navigator defensive Global -12.67 -0.12 0.21 0.27 -0.14 2.24 20 Nov ’07 8.74 Lux’bourg
top 3 newcomers vs index
75
50
25
%
0
-25
Fund selector’s choice
John Husselbee, chief executive,
North Investment Partners
There seems to be just as many bears as there are bulls of the equity
market after the rapid rise of equities from the lows of the beginning
of March. This market environment will more than likely lead to more
ranging in the months ahead. With interest rates at historic lows,
investors are being forced by the helping hands of governments and
central banks to commit further monies to risk assets. If you are
looking to offload a market-timing decision, then Jupiter Financial
Opportunities may be worth consideration.
Hardly a newcomer, the fund manager, Philip Gibbs has been
specialising in analysing financial companies for the past 20 years.
This is the sister to the UK-based fund which has a first-class longterm
performance record due to the fund manager’s thematic and
decisive approach to investing. The UK fund was launched in May
1997 with Gibbs at the helm since inception and assets have grown to
£1bn mark. Financial Opportunities has a very global macro approach
with the economic background dominating the decision of when and
where to invest. Unitholders will expect to see high conviction. This
will include a concentrated portfolio in both stocks and sectors when
necessary as well as high cash weightings to preserve capital.
Indeed, the latest fund fact sheet demonstrates this approach with
a cash weighting exceeding half its total assets. Wary of short bouts
of equity market euphoria and liquidity conditions, a cautious stance
has been adopted. For now, Philip Gibbs is siding with the bears.
DB X-trackers DJ Stoxx 600 BS
Barclays Power
Select Income A Jupiter Financial
Opportunities Feeder
-50
MSCI World
Jun ’08 Aug Oct Dec Feb ’09
23 Jun ’08 – 22 Jun ’09. Source: Morningstar
top 10 newcomers – 1-year risk and return
-40
Sector average
1
4 7 10
Standard deviation (%)
To 22 Jun ’09. Bid to bid, $, gross inc, no cap. Source: Morningstar
August 2009 [www.international-adviser.com] INtERNAtIONAL ADVIsER
Apr
Jun
Fund is billed as comprising
equity investments in
companies from the entire
value chain that develop
innovative technology and
products for the healthcare,
agriculture, environment
and foodstuff production
sectors. As at 30
June more than three-quarters
of the fund was invested
in US companies.
Another vehicle with a
bias to the US is BlackRock
Global Funds’ World
Healthscience Fund, which
held around 94% of its
assets in this territory as at
31 May.
At least 70% of the
fund’s total assets are in
companies whose predominant
economic activity is
in healthcare, pharmaceuticals,
medical technology
and supplies and the development
of biotechnology.
Manager Robert Hodgson
believes innovation and
demand will remain robust
worldwide and drive investment
performance.
Return (%)
10
Barclays Power Select Inc A
db x-trackers
Triodos Renewables Europe R DJ Stoxx 600 BS
0
Jupiter Financial Opps Feeder
UBS (Lux) Inst As Cons RA $
-10
db x-trackers DJ
Stoxx 600 HCS €
-20 Wallberg
JB Biotech B CHF
Real Est P
RS $ Blackrock World Healthscience $
-30 ASI II Navigator Defensive Glbl
21
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