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.
