FUND SELECTOR THEMATIC FUNDS
Top ranked funds Newcomers
“
The vast increase
in infrastructure
spend associated
with the rise of the
middle classes in
emerging economies
and their rapid
urbanisation will
lead to a structural
increase in the
demand for
resources
”
FUND ANALYSIS
Top 10 thematic funds with less than a 3-year track record
1-year 1-year 1-year 1-year 1-year Fund Launch Domicile
% chg Alpha Beta R² volatility size ($m) date
Natural Resources Retail A 89.12 0.87 1.32 0.63 5.24 1.05 20 Sep ’07 Ireland
Atlantis China Healthcare 70.89 0.97 0.37 0.14 3.14 21.71 19 Jun ’07 Ireland
Oceanic CF Global Resources £ 60.99 0.65 0.81 0.48 3.69 N/S 5 Dec ’07 UK
iShares MSCI Emerging Mkts Islamic 55.49 0.75 0.9 0.43 4.34 16.01 10 Dec ’07 Ireland
Investec GSF Glbl Dyn Res A Inc Grs $ 51.19 0.46 0.98 0.73 3.61 50.02 1 Jul ’08 Luxembourg
Craton Capital Global Resources A 46.43 0.36 1.11 0.7 4.17 2.7 4 Dec ’08 Liechtenstein
PF (LUX) Timber P Cap € 44.59 0.24 1.34 0.8 4.71 27.29 30 Sep ’08 Luxembourg
JB EF Energy Transition A € 43.68 0.28 1.26 0.87 4.23 11.16 31 Oct ’08 Luxembourg
PowerShares Global Agriculture Fund 43.35 0.31 0.92 0.59 3.78 3.16 15 Sep ’08 Ireland
db x-trackers DJ STOXX 600 Banks 43.22 0.19 1.65 0.54 7.08 N/S 26 Jun ’07 Luxembourg
To 6 Jan ’10. Bid to bid, £, gross income, no cap. Source: Morningstar
FUND PICKER’S COMMENT
ROSS BROOKES,
COLLECTIVES ANALYST,
CHARLES STANLEY
Atlantis was a pioneer in
launching the first dedicated
Chinese Healthcare
Fund back in 2007. The
healthcare reform programme
in China is ambitious,
comprehensive and
has wide reaching goals,
including improving healthcare
services in rural areas
and medical insurance for
90% of the population.
The portfolio will be
concentrated in nature,
investing in around ten core
names with an overall average
of thirty names. The
manager specifically looks
for undervalued growth
stocks, focusing on companies
which exhibit below
market average valuation
multiples, a strong brand,
significant market share,
management ownership
and solid balance sheets.
There is a bias towards
small and mid-cap companies
within the portfolio.
Although we have not
invested in the China
Healthcare Fund, we have
■ Oceanic Asset Management’s Global Resources Fund is billed as
a less risky way to gain exposure to growth in China – through
commodities.
■ China is a net importer of iron ore, platinum group metals,
alumina, oil and gas, copper, nickel, zinc and coking coal.
■ The fund focuses on a greater exchange diversification, greater
market cap diversification, greater project demographic
diversification and the short-term, periodic use of derivative
instruments.
exposure to the manager,
Yang Liu, via the Atlantis
New China Fortune Fund.
Yang Liu has close access
to a number of influential
ministers in the Chinese
administration which gives
her an excellent insight
into government policy.
While performance will be
volatile, given its single
sector focus and concentrated
nature, we believe
the fund offers an interesting
play on China given
the government’s plans.
Asset managers are forever
looking at ways to
diversify client portfolios
and investment in timber
has gained some traction
with the investment community.
PF (LUX) Timber
plans to exploit the timber
theme by investing in listed
stocks, with a focus on
companies that own and/
or manage forests and
timberland.
Short-term performance
has been excellent and, on
the demand side, the rise of
the middle classes in emerging
economies and their
subsequent need for timber
seems to support the longterm
timber price. On the
supply side, deforestation
continues unabated and
scarcity of resources should
also support the price. The
managers think that the
attraction of timber investment
is reinforced by environmental
considerations.
As a construction material,
wood is coming back
into fashion because of its
superior characteristics in
Top 10 newcomers – 1-year risk/return
100 Atlantis China
Healthcare
Investec GSF Glbl
Natural Resources Retail A
80
Dyn Res A Inc Grs $
Oceanic CF Global
Resources £
Craton Capital Global Resources A
60
iShares MSCI Emerging Mkts Islamic
JB EF Energy Transition A €
40
20
PF (LUX) Timber
P Cap €
PowerShares Global
Agriculture Fund
db x-trackers DJ
Sector average
STOXX 600 Banks
3 4 5 6 7 8
Standard deviation (%)
To 6 Jan ’10. Bid to bid, £, gross inc, no cap. Source: Morningstar
Top 3 performing new funds vs world index
-20
Mar ’09 May
Source: Morningstar
terms of energy efficiency,
versatility and recyclability
and hence appeals to those
investors who have an ethical
bias.
Investors are increasingly
familiar with the longterm
argument for investing
in commodity-related markets.
The vast increase in
infrastructure spend associated
with the rise of the
middle classes in emerging
economies and their rapid
urbanisation will lead to a
structural increase in the
demand for resources.
The Investec Global
Dynamic Resources Fund
has the remit to invest
across all types of commodity,
including energy,
metals, mining, agriculture
and livestock and hence it
is very much a complete
resources space. The flexibility
of the mandate and
non-benchmark driven
approach make this an
interesting proposition.
44 PORTFOLIO ADVISER [www.portfolio-adviser.com] MARCH 2010
Return (%)
120
100
80
60
%
40
20
0
Natural Resources
Retail A
Atlantis China Healthcare
Jul
Sep
Oceanic CF
Global Resources £
MSCI World
Nov
Jan ’10
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