The Newton Oriental fund managed by Ezra Sun has been given an frA rating from Standard & Poor's, re...
The Newton Oriental fund managed by Ezra Sun has been given an frA rating from Standard & Poor's, reflecting his success in converting the fund to a more conviction-led style of management from a more conservative, blue chip approach.
Sun, who was featured in last week's Investment Week's "Fund Manager Focus", has managed the fund since July 1999 when he took over from Newton's Singapore team.
The upgrade comes in an additional paper being sent to S&P clients following the South East Asia Sector Review published in November.
According to Standard & Poor's over the 12 months to 9 November the fund is ranked second out of 76 funds on an offer to bid basis in the Far East excluding Japan sector, with returns of 11.1%, compared with a sector average of -8%.
Sun's management style, which backs his own convictions ahead of both peer group and house views, is also credited by Standard & Poor's in contributing strongly to the fund's second place rating out of 67 funds over three years with returns of 53.7%, compared with a sector average of 21.1%.
The number one fund over both periods is Henderson Pacific Capital Growth Oeic fund, which achieved returns of 88.5% over three years and 11.5% over 12 months.
Sun describes his management style as principally bottom-up and growth-orientated with a strong thematic framework.
According to Standard & Poor's research, tactical sector moves have driven performance well above the sector average. This included a shift from software into hardware in January. Sun is supported by Newton's team of global sector analysts. He also has macroeconomic input from inhouse economist Tim Wilson.
Country bets in the fund are fairly modest, rarely more than 6%, although Sun avoids Thailand and the Philippines entirely and has an element of the fund invested in Australia.
There are no formal risk controls although Sun rarely invests more than 6% in a single stock and liquidity controls require a stock to be tradeable within three days.
The minimum purchase is 2% and holdings currently average 2.5%.
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