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Old Mutual Elite Dollar Growth Fund - News
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Old Mutual Elite Dollar Growth Fund
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Fund
News
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Old Mutual Elite Dollar Growth comment - Dec 03
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Wednesday, 28 January 2004
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Fund Manager Comment
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| Global equity markets rose strongly over Q4 and this was reflected in the USD Growth portfolio, gaining by an excellent 11.47% during Q4, and 5.06% in December. If policymakers are to be believed, conditions for business remain favourable and talk is of a sustained period of stable growth, which, if it materialises, could mean there is further upside in equities over 2004.
The portfolio has had a strong 2003 gaining 31.19% against a benchmark performance of 30.81%. This highlights the excellent management skills being used within the Elite portfolios. All of the key markets have enjoyed good success in 2003 after a poor first quarter, but the tactical allocation of these regions has served the portfolio well. The portfolio's UK managers benefited from taking on a higher level of market exposure during the rising market, and were helped considerably by an overweight exposure to cyclically sensitive stocks. This performed much more strongly than traditional value stocks across the board, and this was a theme experienced across all regions.
The global equity managers used by the fund performed particularly strongly, benefiting from overweight exposure to Japan and a strategic underweight to the US. The style of these managers over the final quarter generally has been to take on additional market bias, and this has benefited the portfolio as markets rallied. In addition, the global managers benefited from some particularly strong stock selection in the pharmaceutical and telecoms sectors. The overweight Japanese section of the portfolio performed particularly strongly by focusing on mid cap stocks, as well as those with a local bias. The portfolio was therefore considerably boosted by the swelling demand for Japanese exports over the quarter. This was due in no small measure to demand from an increasingly import-hungry US economy. In Europe, the managers benefited from strong country selection and their underweight in more defensive stocks.
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Old Mutual Elite Dollar Growth comment - Oct 03
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Wednesday, 26 November 2003
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Fund Manager Comment
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| Global equity markets continued to be lifted by positive economic news during the month of October. Global equity markets rose 5.83% in the month of October, which led to strong positive performance in the Dollar Growth portfolio of 4.47% for the month.
The global equity managers used by the fund performed particularly strongly, benefiting from overweight exposure to Japan and a strategic underweight in the US section of their mandate. The style of these managers over the third quarter generally has been to take on additional market bias, and this has benefited the portfolio as markets rallied. In addition, the global managers benefited from some particularly strong stock selection in the pharmaceutical and telecoms sectors.
The overweight Japanese section of the portfolio performed particularly strongly by focusing on mid cap stocks, as well as those with a local bias. The portfolio was therefore considerably boosted by the swelling demand for Japanese exports over the quarter. This was due in no small measure to demand from an increasingly import-hungry US economy.
In the US section of the portfolio, the bias towards smallcap stocks taken on by a number of the managers was beneficial to the portfolio, as was stock selection in a number of key areas. Among the best investment ideas generated were Paychex, the payroll, human resources and benefits outsourcing company, and Solectron, who provide design, manufacturing and post-manufacturing services.
In Europe, the managers benefited from strong country selection and their underweight in more defensive stocks. Some elements of stock selection hindered overall relative performance, however.
The portfolio's UK managers benefited from taken on a higher level of market exposure during the rising market, and were helped considerably by an overweight exposure to cyclically sensitive stocks. This performed much more strongly than traditional value stocks across the board, and this was a theme experienced across all regions.
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Old Mutual Elite Dollar Growth comment - Sep 03
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Thursday, 13 November 2003
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Fund Manager Comment
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| Global equities as measured by the MSCI World index have risen in each of the past six months, though their performance in September was more muted than over revious periods. The Dollar Growth portfolio performed extremely well over the month, however, with a gain of 1.5% compared to an index performance of 0.48% in Dollar terms.
Greatest growth was seen in the more economically sensitive areas of the portfolio. The manager was overweight areas such as retail, technology and advertising over much of the period, anticipating the greater responsiveness of such stocks to a rallying market.
GAM Star American Focus performed well among the large cap holdings, due to its increased exposure to technology shares. The fund returned 4.81% in dollar terms over the quarter - significantly ahead of the 2.20% seen on the S&P 500.
The European sections of the portfolio also performed well over the period. Odey Continental Europe returned 6.15% in dollar terms over the quarter, compared to the MSCI Europe ex UK which returned 3.94%.
The US economy in particular continues to expand at an encouraging rate, and it is anticipated that equities will continue to rise in the fourth quarter. Whether meaningful progress is made in the medium term, however, depends on the picture that emerges of corporate earnings in the second half, and on the revival or otherwise of the US employment market.
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Old Mutual Elite Dollar Growth comment - Aug 03
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Thursday, 18 September 2003
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Fund Manager Comment
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| The MSCI World Index of global equities has now risen for the last five months, and these gains have been reflected in the Dollar Growth portfolio, which rose by 3.06% in August. The portfolio outperformed the benchmark over the month and is well ahead of its benchmark since launch too.
In the US portion of the portfolio there was strong performance from the Wanger US Smaller Companies fund and also the Legg Mason Smaller Companies fund. Since the equity rebound began in March, it has been predominantly led by the smaller cap stocks. This trend continued during August and the Aggressive portfolio benefited from the manager being overweight the smaller cap sector. The other funds, more large cap focused, performed well too against their respective benchmarks as they were overweight economically sensitive areas of the market eg, Retail, technology and advertising.
Mid and Small cap funds performed best in the UK too, led by strong performance from the Old Mutual UK Select Smaller Companies fund, up over 5% for the month while the FTSE All-Share index was up only 0.92% over August.
Odey Continental Europe performed well, up almost 5% in August, while Gartmore European did well too, beating its benchmark by over 1%.
The Nikkei 225 index rose by over 8% in August, building on strong gains the previous month too. The Japanese element of the portfolio mirrored these gains as stronger than anticipated domestic economic data continued hopes of a recovery. All three of the Japanese funds did well returning over 9% each and therefore all beating the Nikkei 225 index.
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Old Mutual Elite Dollar Growth comment - Jul 03
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Tuesday, 26 August 2003
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Fund Manager Comment
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| As global equities recorded their fourth consecutive monthly rise, the USD Growth portfolio managed to continue its rise too.
The US component of the portfolio saw most funds beat the S&P 500. GAM Star American Focus was the best performer from the large cap holdings - returning over 3% for the month (the S&P 500 rose by 1.62%). The Legg Mason US Small Cap fund produced returns of over 10% for the month, emphasising the fact that smaller caps stocks had the better of large caps in July. In particular the fund had a large exposure to technology stocks which helped to boost performance.
In the UK portion of the portfolio too it was small cap stocks which outperformed the larger cap stocks, and this led to the satellite holdings beating the core holdings for the month.
The European funds performed around their benchmarks as did the Emerging Markets component of the portfolio.
All three of the Japanese funds managed to outperform the Topix index in July. In stark contrast to the US and UK it was the large cap stocks which were in favour here on expectations there would be a turnaround in fortunes for the long struggling Japanese economy. Export driven stocks were the chief gainers as foreign buyers flocked back to the market.
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Old Mutual Elite Dollar Growth comment - Jun 03
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Tuesday, 12 August 2003
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Fund Manager Comment
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| Global equities posted their third straight month of gains and the Dollar Growth portfolio mirrored these figures. The portfolio outperformed the benchmark over the month and also beat the benchmark over the quarter by almost 1.5%.
Within the US portion, two new funds were added. These were the Investec American Equity fund and the Legg Mason US Smaller Companies fund. The Govett US Opportunities fund has been removed from the portfolio to make way for the new holdings.
Legg Mason US Smaller Companies is a well diversified fund of between 200-300 stocks and the fund complements the Wanger US Smaller Companies fund which is a good deal more concentrated, holding 40-50 stocks. The Investec American fund comes with an exemplary track record, having been in the top decile over all periods since its launch.
Performance from the US holdings was good over June, with all funds except one beating the S&P 500 index.
The other change to note in the portfolio came in the European exposure. Investec European has been removed after a period of underperformance and this has been replaced by the Artemis European Growth fund. This fund is also top decile over long periods and has outperformed its benchmark by 8% in sterling terms. European performance was generally around the benchmark with Gartmore being the star performer, outperforming the benchmark by almost 2%.
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Old Mutual Elite Dollar Growth comment - May 03
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Thursday, 19 June 2003
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Fund Manager Comment
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| The MSCI World index of global equities rose strongly in May, and this filtered through to the Dollar Growth portfolio. The portfolio rose by 6.38%, beating the benchmark which gained 5.45%.
The Legg Mason Strategic Value fund has once again been the star performer. It gained 11% on the month. Next best was Wanger US Smaller Companies, which managed to produce positive returns of 10%.
Within the US portion, two new funds have been added. These are the Investec American Equity fund and the Legg Mason US Smaller Companies fund. The Govett US Opportunities fund has been removed from the portfolio to make way for the new holdings.
Legg Mason US Smaller Companies is a well diversified fund of between 200-300 stocks and the fund complements the Wanger US Smaller Companies fund which is a good deal more concentrated, holding 40-50 stocks. The Investec American fund comes with an exemplary track record, having been in the top decile over all periods since its launch. The style employed by this fund is of a bottom up stock picking nature where the analysts look at the company's intrinsic value.
The other change to note in the portfolio came in the European exposure. Investec European has been removed after a period of underperformance and this has been replaced by the Artemis European Growth fund. This fund is also top decile over long periods and has outperformed its benchmark by 8% in sterling terms.
Elsewhere in Europe, Fidelity European and Odey European had strong performance, both outperforming their respective benchmarks.
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Old Mutual Elite Dollar Growth comment - Apr 03
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Thursday, 12 June 2003
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Fund Manager Comment
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| As global equities rose strongly over April, the gains were reflected in the Dollar Growth portfolio.
In the US portion, the star performer was once again the Legg Mason Strategic Value fund. This fund was weighted towards the larger cap stocks and in particular overweight in financials, which was the best performing sector on the S&P 500. Information Technology and Telecoms were two other sectors, which led the charge in US markets. GAM Star American Focus had a poor month, underperforming its benchmark due in part to it being underweight financials.
UK markets followed global equities higher too, rising almost 9% in April. The small cap sector performed slightly better than the large caps. IT and telecoms were strong in the UK too and this led to the GAM UK Diversified fund being the best performer over the month, recovering well from a poor previous couple of months.
Europe as a region, although making good gains over the month, proved to be marginally behind the benchmark. The majority of the holdings, Thames River and Gartmore in particular, performed well, however Odey Continental Europe weighed heavily on performance. This fund has been an excellent performer throughout the geopolitical uncertainty, however it was still positioned relatively defensively and therefore did not take full advantage of the uptick in equities.
Japan, which is having a hard time of things, saw a slight fall in equity prices as the SARS virus threatened the Asia region as a whole.
The emerging markets exposure has added significant value to the portfolio over April. Eastern Europe has been a key driver to these returns with the best performing individual region being Turkey. Latin America performed strongly as a region too, with the Morgan Stanley fund gaining 14% over the month.
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Old Mutual Elite Dollar Growth comment - Mar 03
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Friday, 23 May 2003
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Fund Manager Comment
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| The MSCI World index of global equities fell by 0.56% over a very volatile month (down 5.5% for Q1). The outbreak of war prompted initial joy for equities, followed by a short downturn and then as progress was being made in the advance to Baghdad, renewed optimism on the markets. The Dollar Growth portfolio struggled against the benchmark over the month but is ahead since launch.
Slight changes have been made to the portfolio over the quarter, as the manager continues his efforts to find the best performing underlying funds during what are undoubtedly difficult times. Bill Miller, manager of the very successful Legg Mason fund, slightly underperformed his benchmark over Q1, illustrating just how turbulent markets are at the moment. He is now invested in a number of holdings which he believes are extremely undervalued and he will look to benefit from a recovery in the markets post war.
Wanger US Smaller Companies has been introduced to add a little further small cap exposure to the US portion of the portfolio during Q1. The holding of Franklin US Equity has been reduced to make room for the addition. The fund is a bottom up stockpicker which looks for companies which the firms analysts believe will grow by 20% a year. The manager also ensures that stock selection is made across a broad range of stocks and sectors.
The problems facing the Japanese economy continue to cause concerns for analysts and economists alike. The Bank of Japan, it has been revealed, intervened in the currency markets during Q1 to try and curb the rising strength of the yen against the US dollar. A rising yen makes Japanese exports more expensive for countries world-wide and this in turn hurts an already fragile Japanese economy further.
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Old Mutual Elite Dollar Growth comment - Feb 03
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Friday, 28 March 2003
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Fund Manager Comment
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| Global equities declined over February by 1.90%, in US Dollar terms, and this downward movement was reflected in the Dollar Growth portfolio. The Dow Jones index fell by a shade over 2% while the S&P 500, a much wider based Index, fell by a little under 2%.
Despite general market fears of the pending war in Iraq affecting investor confidence, US fund managers, when questioned are still quite bullish on equity markets. However, with the uncertainty of the impact of war, very few are acting on their convictions and therefore it is almost as if managers are talking the markets down until a successful conclusion is reached over the conflict in the middle-east.
The Wanger US Smaller Companies fund, which replaced the Schroder US Small Cap fund in January has proven to be a good move as this was the best performing fund in the US portion of the portfolio. The normally reliable Legg Mason Strategic Value fund marginally underperformed its benchmark in February, although this has been a fund which has added significant value to the US element of the portfolio in recent months. James Abate, manager of the GAM American Focus fund, indicates that fundamentals may be deteriorating due to the paralysis that has gripped decision-making, although he does believe that good quality companies will continue to distinguish themselves further from the bad ones, leading to good investment opportunities.
The GAM UK Diversified fund has been a strong performer of late, however it did suffer during February. Elsewhere in the UK portion, performance was mixed with Fidelity Special Situations slightly underperforming but JP Morgan Premier Equity Growth outperforming.
As the euro strengthened further against major currencies, European exports were threatened and so too were corporate profits. Continental European indices lost ground in February as a result, with the German Dax and the French CAC losing over 7% and 6% respectively.
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Old Mutual Elite Dollar Growth comment - Jan 03
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Wednesday, 26 March 2003
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Fund Manager Comment
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| Global equities declined over January by 3.12% and this downward movement was reflected in the Dollar Growth fund.
US equities fell on mounting concerns over the health of the overall economy, which slowed during the fourth quarter. The falling dollar, allied to the trade deficit and uncertainty over the cost and the outcome of war in the Gulf all weighed heavily on investor sentiment. Nevertheless, an improved fourth quarter earnings season gave some support to US indices with the S&P 500 down a relatively resilient 2.74%, in USD terms.
Wanger US Smaller Companies has been introduced to add a little further small cap exposure to the US portion of the portfolio. The holding of Franklin US equity has been reduced to make room for the addition. The fund is a bottom up stockpicker which looks for companies which the firms analysts believe will grow by 20% a year. The manager also ensures that stock selection is made across a broad range of stocks and sectors.
Within the UK portion, the GAM UK Diversified fund continues to be an excellent performer. The manager, Andrew Green, has been recently buying into some of the beaten down areas of the market, picking up undervalued stocks along the way. His contrarian style has performed very well, as over the last three years the fund has returned over 20% whilst the FTSE All-Share is down almost 37%.
As the euro strengthened further against major currencies, european exports were threatened and so too were corporate profits. This led to all major european indices losing ground over January, with the German Dax and the French CAC losing over 5% and 4% respectively.
Japan continues to prove a difficult region. Equities here declined as the prospect of war, disappointing US economic data and a falling dollar hurt an already wounded domestic economy.
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Old Mutual Elite Dollar Growth comment - Dec 02
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Thursday, 13 February 2003
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Fund Manager Comment
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| The Dollar Growth portfolio dipped in December mirroring the fall in global equities as investors looked to lock in gains seen in the previous two months. The US region performed well over October and November as telecoms and technology stocks recovered some ground. However falls in December eroded some of those gains and the portfolio finished Q4 up 5.7%.
Legg Mason Strategic Value and GAM Star American Focus were the best performers on the upside as they both actively positioned themselves for the rally in the technology and telecom sectors, however they were also quick to be affected by the reversal in December.
An additional fund has been brought in to the US component in search of a slight growth bias during Q4. DWS American Growth is a quality stock picking fund focusing very much on large cap stocks which does not take excessive risk. The fund manager, Charles Martyn Hemphill, heads up the North American team and has over 20 years fund management experience at DWS in addition to a degree from Oxford University.
Within the UK portion, the DWS UK Growth fund has been added in Q4. To accommodate this fund, the GAM and Credit Suisse holdings have been reduced slightly. This change reduces the defensive element of the portfolio slightly and repositions more towards a growth bias.
Odey European has been an excellent performer over the year and has been ranked first in its sector. The flexible style of the manager enables him to completely transform the positioning of the portfolio very quickly. Elsewhere in the European portion, Fidelity European was a strong relative performer.
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Old Mutual Elite Dollar Growth comment - Nov 02
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Thursday, 19 December 2002
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Fund Manager Comment
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| The MSCI World index of global equities rose by 5.25% over November, the first time it has risen for back to back months during 2002. The Dollar Growth portfolio managed to outperform the benchmark over the month and is comfortably ahead since launch.
The US region has responded well over the last two months with particularly strong gains being seen in the areas most heavily sold off the third quarter, namely telecoms and technology stocks.
Legg Mason Strategic Value and GAM Star American Focus were the best performers as they both actively positioned themselves for the rally in the technology and telecom sectors.
A further fund has been added to the US component in search of a slight growth bias. DWS American Growth fits the bill as it is a quality stock picking fund focusing very much on large cap stocks which does not take excessive risk. The fund manager, Charles Martyn Hemphill, heads up the North American team and has over 20 years fund management experience at DWS in addition to a degree from Oxford University.
Within the UK portion, the DWS UK Growth fund has been added. To accommodate this fund, the GAM and Credit Suisse holdings have been reduced slightly. This change reduces the defensive element of the portfolio slightly and repositions more towards a growth bias.
Odey European has been an excellent performer over the year and has been ranked first in its sector. The flexible style of the manager enables him to completely transform the positioning of the portfolio very quickly. A couple of months ago, the fund was very defensively positioned but over the last few weeks it has become more aggressive, capturing the upside currently experienced from the equity markets, indicating good active management.
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Old Mutual Elite Dollar Growth comment - Oct 02
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Monday, 18 November 2002
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Fund Manager Comment
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| Equity markets enjoyed their best monthly rise this year in October and this was mirrored in the Dollar Growth portfolio. The portfolio rose by over 6%.
The core holdings in the US component are JP Morgan Fleming Blue Chip, Legg Mason Strategic Value and GAM American Focus. The satellite holdings are currently Govett US Opportunities and Franklin US Equity. Strong performance came from the US large cap funds with GAM American Focus, JP Morgan Fleming and Legg Mason performing particularly well. All of these funds have a fairly concentrated large cap bias.
Govett US Opportunities is a more diverse fund containing 60-80 stocks and focuses on mid/small cap companies while Franklin US equity is a multi cap, multi style flexible fund.
Within Europe, Thames River European is a solid core holding and aims to keep volatility low. Tony Zucker, the manager of this fund, invests predominantly in large cap stocks and broadly in line with the benchmark. The fund has performed well since being added to the portfolio and was again ahead of its benchmark over October.
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Old Mutual Elite Dollar Growth comment - Sep 02
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Friday, 8 November 2002
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Fund Manager Comment
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| As equity markets tumbled once more, the Dollar Growth portfolio achieved good performance relative to its benchmark - the MSCI World index. The active management style of the manager did allow the fund, via quality stockpicking, to outperform the benchmark by 1% over the month and the also outperform over the quarter.
The core holdings in the US component are JP Morgan Fleming Blue Chip, Legg Mason Strategic Value and GAM Star American Focus. The satellite holdings are currently Govett US Opportunities and Franklin US Equity.
A number of changes have been made to underlying holdings during Q3 in order to adapt to the current investment climate. Within the European exposure, the Old Mutual European Blue Chip portfolio has been removed. Instead, funds have been moved to Thames River European and also Odey Continental Europe.
Thames River has been introduced as a core holding and aims to keep volatility low. Tony Zucker, the manager of this fund, invests predominantly in large cap stocks and broadly in line with the benchmark. The fund has performed well since being added to the portfolio, outperforming its benchmark in September.
The Odey Continental Europe fund, run by Hugh Hendrie, is very flexible and is an excellent satellite holding. The manager has within his mandate the ability to switch some exposure to bonds and cash and this has helped recent performance.
The fund manager of the HSBC UK Equity fund left and as a result the fund has been taken out of the portfolio. Credit Suisse Income and GAM UK Diversified have been introduced during Q3.
Within the Japanese portion of the portfolio, the manager bought into the Fidelity Japan Special Situations fund in order to increase the overall small cap exposure.
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Old Mutual Elite Dollar Growth comment - Aug 02
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Tuesday, 17 September 2002
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Fund Manager Comment
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| With continuing mixed economic data, equity market sentiment remains fragile. Fundamental economic data when positive is being ignored, and when negative being exaggerated. The MSCI World index of global equities was flat in August. The Dollar Growth portfolio traded marginally downwards (0.28%), but has maintained relative outperformance over six months and one year.
The US economy continues to be the main global focus where mixed economic news is coming through. US GDP grew 1.1% in the second quarter, less than what economists had expected. Some positive economic data also filtered through - productivity, an engine of the US economy's longest expansion in the 1990s, rose for the fourth quarter in a row in Q2 at double the pace economists had expected in the first three months of the year. US consumer confidence steadied in August, the University of Michigan survey showed, indicating that consumer spending will probably support the economy's recovery. The Federal reserve left interest rates at a 41-year low of 1.75%.
August saw a positive turn for the US portion of the portfolio with all the US funds up between c.5% and c.9% in dollar terms. The GAM American focus fund was the star performer as the large cap bias within the fund has been positive for growth and positions in consumer staples were appropriately reduced.
Within the Japanese portion of the portfolio, the manager bought into the Fidelity Japan Special Situations fund in order to increase the overall small cap exposure. Year to date the fund is up c.5% in dollar terms and is also top decile.
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Old Mutual Elite Dollar Growth comment - Jul 02
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Thursday, 29 August 2002
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Fund Manager Comment
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| In the wake of Enron and WorldCom, equity market sentiment is fragile at present, which is leading to volatile markets. Fundamental economic data when positive is being ignored, and when negative being exaggerated. The MSCI World index of global equities was down in July by 8.51%. The Dollar Growth portfolio mirrored the falls in the equity market, but has maintained relative outperformance over six months, one year and since launch.
The US economy continues to be the main global focus. Only when signs of a sustained economic recovery in the US are seen will the rest of the world economies' regain more solid growth patterns. "The US economy is gaining momentum and can weather a loss of faith in corporate honesty", said Federal Reserve Chairman Alan Greenspan in his monetary policy statement to the US Senate Banking Committee during July. The Fed raised its growth forecast for this year to as much as 3.75%.
The UK's goods trade deficit contracted sharply to £1.7bn in May with exports to countries outside Europe surging. Rising goods exports suggest a recovery in the manufacturing sector, providing greater balance in the UK's two-speed economy. The manager has selected funds which can respond well to the changing economic conditions found in today's environment. For example the HSBC UK Equity fund is managed by Tim Russell who has the flexibility to shift between growth and value stocks as he sees fit, therefore not restricting him to one particular style.
Within the European portion of the portfolio, the Old Mutual European Blue Chip fund has been replaced by HSBC European equity fund. This fund has been introduced as a core holding and sits alongside Gartmore, Investec and Fidelity in the European exposure of the portfolio.
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Old Mutual Elite Dollar Growth comment - June 02
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Friday, 26 July 2002
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Fund Manager Comment
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| Given the way global equity markets have been in the last three months, the Dollar Growth portfolios exceptional strategy has enabled the fund to outperform the benchmark by 2%. The MSCI World Index of global equities has fallen by over 9% this quarter amid high profile accounting scandals in the US. The Dollar Growth portfolio remains ahead of its benchmark over the longer term, beating the benchmark since launch by c. 3.5%.
John Muresianu, the manager of the Fidelity American fund retired in June, to spend time managing his own investments. This fund was a particularly strong performer and was in positive territory year to date, highlighting the quality of his stockpicking ability. Within Elite, the manager has decided to lock in the gains made from this by selling and switching to Govett US Opportunities which is a fund run in a similar manner to Fidelity American.
The Govett US Opportunities fund has a 5 star rating from Standard and Poors so is a more than competent substitute. The fund, managed by Gil Knight, is 1st quartile over 1 year, 3 years and since launch, endorsing the management style of the manager.
The core holdings in the US are the JP Morgan Fleming Blue Chip, Legg Mason Strategic Value and GAM Star America. The satellite holdings consist of managers who invest in stocks with conviction rather than consider a stock's weight in a benchmark - the holdings here are Govett US Opportunities and Franklin Templeton.
Ashton Bradbury, who manages the Old Mutual UK Smaller Companies fund, was named overall fund manager of the year by Citywire Funds Inside in May. He has already established an outstanding reputation as a stockpicker and now he has received this third party endorsement to back this up. The fund has outperformed the FTSE All Share comfortably over Q2.
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Old Mutual Elite Dollar Growth comment - May 02
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Friday, 26 July 2002
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Fund Manager Comment
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| As global equities edged downwards the Dollar Growth portfolio traded downwards too. The portfolio is ahead of the benchmark over the short term and since launch. The flexible strategy adopted across the board has provided solid performance.
All eyes still appear to be focused on the US market and until some significant signs of progress are noted here, the rest of the world seems content to wait patiently. Good economic news is coming through, however this is being offset by less than startling corporate newsflow. The Federal Reserve kept interest rates unchanged, but importantly reiterated the neutral bias showing the Fed is confident about recovery.
Recent performance is evidence that by utilising proven stockpickers we can add value in flat equity markets. The core holdings in the US are the JP Fleming Morgan Blue Chip, Legg Mason Strategic Value and GAM Star America, with GAM adding good value during May. The satellite holdings consist of managers who invest in stocks with conviction rather than consider a stock's weight in a benchmark - the holdings here are Fidelity American and Franklin Templeton.
Fidelity American has been a strong performer year to date, adding 11% despite the tough equity markets. This again highlights the merits of quality stockpickers even where markets are not buoyant.
The main focus in the UK continues to be via HSBC and JP Morgan Fleming, with satellite holdings being in Fidelity Special Situations and Old Mutual Smaller Companies.
Ashton Bradbury, who manages the Old Mutual UK smaller companies fund, was named overall fund manager of the year by Citywire Funds Inside in May. He has already established an outstanding reputation as a stockpicker and now he has received the third party endorsement to back this up. The fund was up over 1%, whilst the UK equity market was negative over the month.
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Old Mutual Elite Dollar Growth comment - April 02
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Monday, 24 June 2002
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Fund Manager Comment
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| The strong performance of global equities in March was eroded in April as global markets fell 3.52%. Surprise performance data showed US GDP rose by a greater than expected 5.8% on an annualised basis. This positive news was outdone by gloom in the corporate sector. The general gloom hangs on whether corporate profits will be able to rebuild, even with an economic recovery evidently underway.
Despite the poor performance of equities this month the Elite Growth Portfolios fell by less than half the market, outperforming this month by c.2%. This performance is evidence that utilising pragmatic managers who can change the portfolio as markets sway enabling them to profit from those areas of the market that are in favour while avoiding those areas that lead the market downward.
The USA was the mainstay of downward pressure last month as the corporate gloom hit especially hard on the main indices. The S&P 500 fell over 6% and the Nasdaq was down 8.51%. The USA is one of the more expensive markets on a simple price to earnings view so the fact earnings are core to stock prices means that when these earnings are questioned the US market tends to be hit hardest.
The USA composition remains unchanged with the core holdings built around pragmatic, flexible managers with less benchmark conscious managers making up the remainder of the US exposure.
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Old Mutual Elite Dollar Growth comment - March 02
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Thursday, 16 May 2002
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Fund Manager Comment
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| Global equities were flat in the first quarter of 2002 despite a strong 4% rise over March 2002. The Dollar Growth portfolio has now outperformed over all periods except two years.
The main focus on US equities continues to be via JP Morgan Fleming, Legg Mason and GAM American Star Focus. Along with the Fidelity American and Franklin US Equity funds, the manager has a balanced approach to the US market which has brought strong recent outperformance to the portfolio.
In Europe, the manager has purchased Investec Continental Europe and reduced his exposure to Gartmore this quarter. The Investec fund does not adhere to any benchmark but is controlled by limiting any one stock to 5% of the overall fund. It is a stockpicking fund with between 30 - 40 holdings generally focused on large cap companies.
The European component received a third party endorsement this month as Standard & Poors raised the research rating for the Investec and Fidelity Funds to AAA. Standard and Poors commented that Albert Morillo, manager of the Investec European Fund, has decisive views, which are tempered by a pragmatic assessment of risk, meaning that he avoids aggressive positions. Separately, Anthony Bolton, manager of the Fidelity European Fund, was noted on his seemless ability to continue managing the mid-cap focused fund even though the overall fund size was increasing.
The UK exposure was altered this quarter by removing Liontrust First Growth. This was a good performer but the degree of correlation between this and the HSBC and Premier Equity Growth funds became too high. Removing the fund reduces the style risk and allows the manager to bring in Fidelity Special Situations, a quality stockpicking fund managed by Anthony Bolton, which has scope to vary from the benchmark.
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