Skandia Global Best Ideas still a top performer
More on Multi-Manager Funds
- Fund Selector: Rising interest in a rate rise
- Fund Selector: Upside of deflation
- Are cautious funds too risky?
In focus: Outsourcing Investments
Lee Freeman-Shor’s £287.8m Skandia Global Best Ideas fund has kept its performance in the top quartile of its peer group, thanks to taking more risk in the first quarter of 2012.
The fund remains the poster child of the Skandia Best Ideas range of funds, which invest solely in the top stock picks of a select group of fund managers in a bid to benefit from their combined expertise.
In the three years to June 13 it gained 33.9 per cent, ranking it 16 out of 117 funds in the IMA Flexible Investment sector - firmly in the top quartile. This is thanks to a strong first quarter of 2012, when global markets rallied ahead of their May slump.
However, the fund has still returned less than the average for the Flexible Investment sector over five years to June 13, according to FE Analytics, with a loss of 4.4 per cent compared with 1.8 per cent.
Currently the list of managers who contribute to the fund includes BlackRock’s Richard Plackett, Schroders’ Richard Buxton, Artemis’s Tim Steer and hedge fund giant Crispin Odey.
The strong three-year performance has been reported as the fund last week confirmed its annual shift in geographic exposure.
The fund uses a GDP-weighted approach to regional exposure outside of the UK, which is held at 50 per cent, and is rebalanced at the same time as the annual MSCI AC World GDP index rebalancing.
As part of this, an Asia Pacific excluding Japan mandate run by Tiburon’s Mark Fleming has risen in size from 7.7 per cent of the fund to 8.3 per cent. Its emerging markets mandate, run by First State’s Jonathan Asante, has risen from 10.5 per cent to 11.2 per cent.
The weighting in the European mandate run by Mr Odey has been cut by 0.5 percentage points, the US mandate run by Tom Marsico has been trimmed by 0.5 percentage points and the Japan mandate run by Schroders’ Nathan Gibbs has been pared back by 0.1 percentage points.