Efficient boasts world's top performing fund in its class

In the latter part of 2008 panic struck international markets, in the United States the seemingly unassailable Lehman Brothers was sinking and the world entered a spiralling market crisis.

Through diligent management the OMGB Efficient International Fund of Funds rose to the challenge and not only rode out the market crash, but emerged as one of world’s top international fund of funds. Over the three year period from 1 February 2007 to 31 January 2010 the fund secured the number one spot out of 87 three-year and older funds in the Asset Allocation Global Flexible (USD) category of the Global Investment Fund Sector (GIFS).

The numbers speak for themselves. Measured against the MSCI World Index (USD) benchmark, the annualised return for Efficient’s FOF was a positive 5.07%, compared to the

-2.88% average for the GIFS category average and the -9.30% return on of the MSCI World Index .

The picture for cumulative returns over the same period favoured the upside even more. The MSCI world index stumbled to -25.38%, the GIFS category average posted a -8.41% loss, while Efficient’s FOF reversed the trend at 15.99%.

Serendipitous timing saw Efficient’s FOF 100% invested in cash, shortly before the Lehman Brothers collapse scared investors out of stock markets. Thereafter the fund diversified into gold and equities.

“We used the largest gold exchange-traded fund, the SPDR Gold Trust and following discussions with our team and economists, we decided to favour emerging markets,” says Efficient International Fund of Funds manager Harold Hopking.

Solid and timely choices with underlying funds further bolstered the FOF’s performance.

SPDR Gold turned out to be a frontrunner, as did Orbis Global Equity and Orbis Asia ex-Japan. Both of the Oribis funds were top performers in their respective Morningstar Equity Categories up to 2009. Templeton Emerging Market Small Cap and Templeton BRIC rounded out the selections for the emerging market strategy.

Of their current strategy Hopking says, “We are diversified among cash, bonds, property and equity. We believe emerging markets will continue to perform and China will continue to grow.”

He adds that the technology sector is one to watch going forward, heeding sentiment that the sector is returning to favour with investors.

In conclusion Hopking was bullish. “For actively managed diversified offshore exposure and given the current strong currency, I’d say, buy now."

Data source: Morningstar