Pie Funds relaunches global fund
Pie Funds is relaunching its global fund, and increasing the number of direct investments it holds
Wednesday, February 22nd 2017, 6:01AM
by Susan Edmunds
Head of client services Sam de Court said the fund had been operating for just over three years and had evolved over the past year.
“It used to be entirely a fund of funds,” he said.
“The reason we did that was that we didn’t have the experience in investing outside Australasia, but over time two things changed. We came to realise with a fund of funds, it’s very hard to outperform.”
He said the fund was too highly diversified, with as many as 500 underlying stocks.
“Even though the fund managers we used were top of their region, we would just get the average of everyone’s returns. We starting doing direct investments and build that up. We built up the confidence that we could do it successful from here.”
The global fund is now just 25% a fund of funds.
The move has paid off so far – in the year to the end of January it returned 10%, and to mid-February it was tracking at 16.5%.
De Court said it was easy for New Zealand investors to get caught up in chasing the local funds with the best recent returns.
But he said now was a good time to get people thinking about the benefits of diversification. The global fund still has about 200 underlying stocks.
It has $66 million in assets under management.
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