Three stars for Five Oceans’ first fund
Standard& Poor’s (S&P) has awarded boutique fund manager Five Oceans first product offering, its international equities fund, a three star rating.
The Five Oceans World Fund, established in November 2005, employs strategies such as gearing, derivatives and short positions on overpriced stocks, with the objective of providing consistent positive returns.
The ratings house is reasonably confident about the manager’s ability to achieve its goals, but remains concerned over the infancy of the Five Oceans operation.
“Although we are confident the fund can achieve absolute performance, we remain watchful, as with any new group, of the stability of the investment team. The team of five all have international investment experience, with most having worked at Bankers Trust,” S&P fund analyst Lee Comper said.
“Capital preservation is a key objective of the fund, largely reflected in its flexible net exposure. The ability of Five Oceans to use the net exposure ranges effectively is yet to be shown, but the necessary groundings and principles for effective use do exist,” he explained.
The boutique manager began its operations in September 2005, and is 25 per cent owned by Challenger Financial Services.
Recommended for you
Financial advisers are reminded to ensure their CPD is up to date with the Financial Services and Credit Panel making its second determination in a week after an adviser failed to meet the requirements.
An adviser has received a written reprimand from the Financial Services and Credit Panel after failing to meet his CPD requirements, the panel’s first action since June.
While efficiency remains a top priority for Australian advisers, State Street has revealed the profession is now juggling this desire with the need to maintain personalisation of its service offering.
A possible acquisition of data provider Iress is becoming a greater likelihood after the firm announced it is engaging with multiple interested parties.
