Skandia Investment Group’s GBP850m Global Dynamic Equity Fund has outperformed the IMA Global Growth sector by 14 per cent and is 6.3 per cent ahead of its benchmark – the MSCI AC World Index – in its first year.
Chief executive Nils Bolmstrand says: “I’m really pleased to see that the investment management expertise we’ve brought together within Skandia Investment Group has led to an impressive first year for what at GBP850m is rapidly becoming our flagship equity fund.”
The fund was launched in March 2009 to offer investors a flexible equity solution that combines both manager selection and active asset allocation in a single package.
The fund invests in a diversified portfolio of high-quality investment managers, each running specialist regional or country specific mandates across the full range of global equity opportunities.
François Zagamé, who manages the fund together with John Ventre and Ryan Hughes, says manager selection has been the main source of alpha, accounting for around two-thirds of outperformance versus the benchmark, while asset allocation positions has added the remainder.
He says: “On the manager selection side, manager highlights include Marsico (US equities), FuNNeX (Japan), Schroders (UK) and MIR (Asia Pacific), all of which have substantially outperformed their respective benchmarks. The fund’s overweight position in Asia Pacific (ex Japan) and emerging market equities has proved particularly beneficial. The fund’s underweight position in developed Europe ex UK has also been a key contributor to performance since launch.”