Oasis Asset Management has once again been ranked as the country's top performing asset manager on a 3-year risk-adjusted basis, according to the latest Alexander Forbes Large Manager Watch (AF LMW) survey. The rankings released this week show that Oasis ranked first in both the local and global large manager watch over a 3-year period ending 30 June 2007.
The AF LMW rankings reflect the performance of the eleven largest managers of discretionary assets in South Africa on a pure performance and risk adjusted basis. The portfolios measured are balanced (i.e. multiple asset class) and are subject to the restrictions imposed by Regulation 28 of the Pension Funds Act.
In the risk versus return category, both risk and return are taken into account to determine an overall rating. The latest ratings show that for the three year period ended 30 June 2007, Oasis achieved a risk adjusted score of 3.98 in the domestic category and 4.55 in the global category, placing it well ahead of its nearest competitor, which came in with scores of 3.88 and 4.23 respectively.
The AF LMW ranking is consistent with the PlexCrown rating that Oasis received last week. According to the latest PlexCrown rating system, Oasis Asset Management retained its spot as the top performing collective investment scheme manager for the fifth successive quarter.
According to Oasis Asset Management CEO and CIO, Adam Ebrahim, the success of the Oasis team is based on their investment philosophy of generating superior returns at lower than market risk.
"In positive market conditions, anyone can generate great returns by increasing the amount of risk that they take on. While this approach may generate strong returns in a bull market, it comes at a tremendous risk to investors should a downturn occur. Managing risk is crucial, especially when dealing with clients' pension fund assets. We believe in giving clients great returns but we also believe in giving them the 'sleep well' benefit."
He says Oasis prefers to follow a low volatility investment style focusing on identifying undervalued companies with strong cash flows, healthy balance sheets and excellent management teams.
"We hate losing money, so for every unit of risk we take, we want a commensurate return. We want our clients to know that when they invest with us, there is a lifejacket and a parachute included."
According to Ebrahim, while Oasis places an enormous focus on risk protection, it has still managed to produce nominal and real returns far in excess of the market average.
The AF LMW survey shows that the Oasis domestic portfolio has generated an annualized return of 34.85% over the last three years. The global portfolio has returned 34.15% annualized over the same time period.
"While these returns compare favourably with those of our competitors, we have taken on far less risk than anyone else in the market to generate them. This means our clients can sleep easier at night, knowing their investments are well protected."
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