As part of our special report on the offshore investment industry, International Investment asked St...
As part of our special report on the offshore investment industry, International Investment asked Standard & Poor's Micropal to rank its universe of offshore fund groups by the overall fund performance of all its equity funds .
Each fund was ranked according to percentile performance within its sector. For example, a fund with the best performance in its sector would receive a ranking figure of one whereas a fund at the bottom would rank 100. The total for each fund within a group were combined to come up with an overall group average ranking figure. The lower the average ranking figure the better.
Groups with less than five offshore funds in S&P Micropal's universe were excluded.
In addition, groups with between five and 15 funds were categorised as small, and groups with over 15 funds were categorised as large in order to gain a fair comparison.
Fund ranges of affiliated fund management groups were combined for ranking purposes.
Based on the above criteria, over a three-year period, the top performer in the smaller group category out of a total of 78 groups was Dresdnerbank Asset Management, and over a one-year period the highest rank was Deltec Bank and Trust out of a total of 93.
Also in the small group category, US group Fiduciary Trust was ranked sixth over the three-year period and seventh over one year. James Hammond, sales and marketing director of Fiduciary Trust, said: "Our key strengths have been in small and mid-cap equities."
With strong expertise in the US small cap markets, Hammond believes the experience gained from this market has helped the group to establish itself in the European market.
He added: "Our most popular offshore funds include global equity fund, European small cap fund, main stream European fund as well as US small caps fund."
Michael Andrews, director of international business development at Henderson, puts top performance down to the research process, coupled with the decisions made by the fund managers. Henderson was rated number seven over a three-year period for smaller companies.
The company has a range of Luxembourg equity funds in regions such as Japan, Europe and the Pacific and also has specialist funds such as the global technology funds. Each fund is run individually and aims to outperform and add value to investors.
In the large group category over a three-year period, the number one performer was Fidelity out of a total of 33 groups, while over a one-year period the number one performer out of a total of 45 groups was ABN AMRO Funds.
Rothschild Asset Management ranked number 10 over a three-year period and number seven over a one-year period, and has a philosophy of growth and low risk.
Rebecca Newstead, fund manager for UK Equities at Rothschild Asset Management, said: "We are keen on buying at the right price. Tech stocks have been our major theme. Here we have been looking at long term favourites and are supporting Arm Holdings, NXT and NSB. We have not got carried away with dotcom stocks."
"We structure funds in the top 100 and mid-250 and hold about 50 stocks in the fund at any one time. We have a team-based approach and our staff are specialists in their fields. In our investment process we look at both the quality of the company, which includes the financials, growth prospects and management and the valuation," added Newstead.
Threadneedle, ranked eighth over three years, also believes they have a strong group performance because of a clear investment process based on real team work and risk control.
Richard Eats, communications director at Threadneedle, believes an important factor to have aided the group philosophy is having one range of funds distributed both in and outside the UK.
Flemings came out 10th over the one-year period and ninth over three years. Eleanor de Rosmorduc, Flemings communications manager in Luxembourg, points out that its strengths have been in the emerging markets.
This year Flemings has launched sector and style funds such as the European Technology fund which have performed well. Flemings still favours technology and is excited about Asia at the moment.
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