Skandia Investment Group (SIG) has appointed international equities manager Five Oceans Asset Management to manage its US$350m Skandia Global Equity Fund mandate.
Although generally regarded as a long only manager Five Oceans successfully uses innovative techniques to manage downside equity risk for its clients in order to deliver strong returns while having less volatility than the market. Its strategy is to use a diversified portfolio of sectors and styles while aiming to significantly outperform the MSCI World Index over a rolling 3-5 year period - while also delivering a positive return.
The mandate has, until now, been run by J.P. Morgan Asset Management.
Adam Smears, Head of Investment Research and Portfolio Manager at Skandia Investment Group in the UK said: "Five Oceans Asset Management are an experienced firm who deliver outperformance beyond the broader markets by having an absolute return mindset. In reality this translates to a portfolio filled with high conviction names, with the commensurate volatility managed through an adept use of derivatives. It is rare to find managers with this laser focus on a client's outcome combined with the technical skill to execute innovative , but common sense risk management programme. We firmly believe this is the approach to long only equity investing our clients now seek."
Smears said that there were three broad reasons for using Five Oceans Asset Management for SIG's clients in the Skandia Global Equity Fund:
They have a high conviction portfolio of around 50 core holdings that seeks to produce positive returns and manage risk over the long term across changing market conditions.
They have demonstrated an effective use of derivatives and hedging strategies to manage risk.
The research they undertake considers environmental, social and corporate governance.
Five Oceans' Chief Executive Officer, Ross Youngman, said: "We're excited about taking over the management of the Skandia Global Equity Fund, and to be broadening the distribution of our investment strategies internationally. The Skandia Global Equity Fund will be managed in a similar manner to the Five Oceans World Fund, which has outperformed the MSCI World Index by over 5% annualised after fees*note 2, since inception in 2006, as well as in each calendar year".
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