Every month in IPE we analyse the portfolio style of a fund using the return-based portfolio analyser developed by London-based firm Style Research.
This month we have chosen the DIT-Dresdner US Equity fund, managed by Dresdner International Management Services in Dublin.
The graph shows the changes in style the fund experienced during 12 months starting in February 2001 and i’s based on the fund’s monthly historical data for the last four years provided by Standard & Poor’s Micropal.
According to the analysis the fund has been mainly focused on large value assets. At the beginning of the period analysed 62% of the fund’s total assets were invested in large value US stocks, an exposure to this type of share which only decreased slightly during the following 12 months. The highest proportion of assets invested in large value was, according to the graph, registered at the end of the second quarter of 2001, representing around 68% of the total investments of the fund.
Small value shares in US companies represented 19% at the end of February 2001, increasing to 31% by February of this year. Whereas exposure to small value shares has varied significantly, investment in large growth stocks has remained low and relatively constant throughout the 12 month period. The percentage of assets invested in large growth stocks was 8% in February 2001 and around 13% at the end of February this year. Exposure to cash started with 12% of total assets at the end of February 2001, yet by the end of August 2001 there was none with the allocation being moved to small value investment.
The fund has obtained a five-star rating by Standard & Poor’s and has assets for €170m.