The performance of the Way Group’s multi-manager range is improving after a poor 2006 that saw three of its funds languish in the fourth quarter.
Its cautious portfolio and global blue managed portfolio funds are now up to second quartile while its global red active portfolio fund has climbed into the third quartile.
IMS says there have been no major changes in its investment style and attributes the turnround in performance to the market better suiting its management style. It focuses on big firms in growth sectors because it has believed for some time that value stocks are looking more expensive than growth stocks. Value stocks, especially high-income equities, have been dented by higher interest rates so investors are now looking at growth stocks, it saysIMS says it tries to be in tune with the market but will take underweight and overweight positions of up to 5 per cent. Sector weightings in the Way funds have been out of step with the market until recently but are starting to pay off. On a medium-term outlook, the funds are overweight UK, underweight US, slightly underweight Europe and overweight Japan.
IMS director Paul Kim says: “The Way funds have been making small incremental gains and that is what we like. More significantly, JPM natural resources had a good year, as did Richard Buxton’s Schroder UK alpha fund.”