MiPlan IP Global Macro makes the most of Global opportunities – Again and Again
Individual stock picks and sound asset allocation earned the MiPlan IP Global Macro Fund this year’s Raging Bull Award for the top performer in the Global Multi Asset Flexible Sector.
This is the second year in a row that the fund has won this prestigious award. With this consistency of process and results it therefore seems appropriate to repeat what we wrote after winning the award last year.
Investors seeking growth opportunities from global markets have been typically faced with a decision of choosing between equity only or balanced type funds. The selection of a regional or currency bias often put further restrictions on the mandate and restricts the manager accordingly. Our research, has shown that at the core of investor’s needs when investing for the longer term, is the requirement for a mandate that allows the manager to seek global opportunities while allowing the management of downside risk through the use of flexible asset allocation to less risky asset classes.
In an equity fund, the manager is forced to buy equities even if the market is expensive, or if they see few opportunities or even if a better asset class currently presents itself. In a balanced fund, the benchmark and mandate often result in the client having bond exposure by default due to the benchmark even if they are more optimistic on equities and could find many opportunities in the equity market.
Without the constraint of having to hold 100% equity, and with the total flexibility to hold other asset classes or reduce equity completely, the ability to implement global macro decisions in both stock selection and asset allocation became a reality when we launched the MiPlan IP Global Macro Fund with its flexible mandate.
In receiving the Raging Bull Award for the best Global Multi Asset Flexible Fund over a 3 year period, the MiPlan IP Global Macro Fund has produced equity like returns at lower than market risk. At the core of the equity selection process is an analysis of the global macro environment and the identification of drivers that will enhance earnings and the selection of companies that are best suited to take advantage of these drivers.
Most pleasing, says Anton Turpin, is the return of *49.1% for the 3 years ended 31/12/2016 and *38.82% for the 3 years ended 31/12/2017. This was achieved by persistently adding a small amount of alpha relative to the average fund in its sector. Consistency should give investors much confidence in the manager’s ability.
Managing money through at least three bear markets is the minimum “qualification” we, at Mi-Plan, would require to appoint a manager to run global asset allocation, says Turpin. While this is no predictor of any future performance, it is indeed pleasing to know that the mandate allows the manager to trade for both risk-on and risk-off market conditions in the pursuit of long-term capital growth.
*Source Financial Express. Please visit www.miplan.co.za to view the fund’s Minimum Disclosure Document and for mandatory and other disclosure purposes.