A measure of consistency

Michael Porter, Harvard House chief investment officer.

HARVARD House Investment Management has walked away with its second industry recognition in as many months when the Howick-based independent financial services group won the Morningstar Best South African Equity Fund award last night/Wednesday night.

In January the company won three Raging Bull honours in the Sanlam Plexus Profile Media Raging Bull awards, securing recognition for the Best South African Multi-Asset Income Fund (Absolute Performance) certificate for the Harvard House BCI Flexible Income Fund and Raging Bull awards for the Best South African Equity General Fund (Absolute Performance) and the Best South African Interest-bearing Fund (Absolute Performance) for its BCI General Equity Fund and BCI Flexible Income Fund respectively.

In winning the Morningstar Award, Harvard House beat the entire general equity category including well-established household names.

Harvard House chief investment officer Michael Porter says whereas the Raging Bull awards recognition was purely based on performance and the returns secured for clients, the Morningstar awards take into consideration the risks taken to achieve those rewards.

Raging Bull also only considers a three-year period, whereas Morningstar incorporates the risk element over one, two, three and five years - essentially the growth was not achieved without due consideration of clients' exposure to risk.

"That we have emerged top of the pile in the general equities sector tells our clients we are playing among South Africa's best funds and proving our mettle. The Morningstar awards are an external audit of our investment process and both these awards recognise Harvard House as having achieved a high bar in the investment industry," Porter says.

He says Harvard House's goal had always been to be in the top quartile, not necessarily "top of the pile" with a philosophy pursuing quality counters producing consistent and sustained dividend growth.

"We shall continue doing this. Awards are not our primary focus, merely a satisfying cherry on the top, but what is important is we continue assisting clients to manage their wealth and provide a financial management partner of substance - and these awards have gone a long way in successfully achieving that goal," he says.

Morningstar annually recognises unit trusts that have delivered excellent risk-adjusted returns for investors. The Morningstar Awards are designed to help investors identify the country's most exceptional funds and fund managers for the previous year.

Established in 1972, Harvard House provides a comprehensive range of wealth management solutions. Full details and the basis of the Morningstar award are available at clients' requests.