As 2005 draws to a close there are 3 questions that all investors need to ask:
1. What results have each of your investments produced for the year?
2. How much time and effort did you have to put in to achieve those results?
3. And if you are not entirely satisfied with your responses to the above two questions what are you going to do differently in 2006 in order to experience the results that you really want?
In this special report I’m going to share with you some privileged information that demonstrates the degree to which the world’s top fund managers have outperformed the rest of the world. You’ll be shocked at the gap between the results of true professional fund mangers compared with the poor results that most fund managers, and therefore most investors, produce. As you’ll see, the top fund managers really are in a league of their own.
And while I can’t supply you with the actual names of the funds (which are available in the list of Top 20 funds) I will give you a concise one paragraph snapshot of:
what they invest in,
how big their fund is,
who audits the fund,
their compounded returns and
their best and worst years.
It’s the most that I can do to give you a small taste of the data available in the Top 20 funds list and that big institutional firms pay as much as $50,000 for, without ‘giving away the farm?
The fund information outlined in this report is an extract from the highest yielding offshore funds over the last 5 years, as at 31st of March 2005. I’ve also provided you with year to date results as at 30th September 2005. That way you can see how each of them are tracking this year. The data provided below represents perhaps less than 10% of the data that is provided on each of the funds in the Top 20 funds list.
Ranked No.1 ?1038.09%
Ranked in first place over the last 5 years is a fund that invests in the restructuring of the power sector within an emerging market economy, with a bias to small and medium sized corporations. Over the last 5 years they have achieved a compounded return of 1038.09%*. In other words if you had invested US$50,000 5 years ago, today you would have a balance of $519,045.
The fund is audited by KPMG (one of the top 5 accounting firms in the world) and the dollar value of funds under management is $70.82 Million. Their best return was in 2003 when they achieved 158.92% and their worst return was in 2000 when they returned only 11.8%. Over the last 5 five years the fund has never made a loss within a calendar year. And as at 30th September 2005 they had already returned 52.95%. So again they appear to be on track to another great year.
Ranked No.2 ?748.85%
Ranked in second place is another fund managed by the same fund manager as the number one ranking fund. This fund invests in equities (shares of stock in a corporation that pays the holder some of the company’s profits) and again the bias is to small and medium sized corporations with a focus on events that can lead to quick profits, undervalued corporations, and companies with growth prospects and high dividend yield. Over the last 5 years they have achieved a compounded return of 748.85%*. In other words if you had invested US$50,000 5 years ago, today you would have a balance of $374,425.
The fund is audited by KPMG and the dollar value of funds under management is $22.72 Million. Their best return was in 2001 when they achieved 135.53% and their worst return was in 2004 when they returned only 20.49%. Over the last 5 years the fund has never made a loss within a calendar year. And as at 30th September 2005 they had already returned 107.90%. So they appear to be on track to a record year.
Ranked No.3 ?539.01%
Ranked in third place is a fund that invests in liquid (easily sold or saleable) securities, and to a lesser extent illiquid securities in emerging markets. The company has a focus of preserving capital and avoiding the notoriously high volatility associated with emerging markets. Over the last 5 years they have achieved a compounded return of 539.01%*. In other words if you had invested US$50,000 5 years ago, today you would have a balance of $269,505.
The fund is audited by Ernst and Young (again another top 5 accounting firm) and the dollar value of funds under management is $38.3 Million. Their best return was in 2001 when they achieved 261.72% and their worst return was in 2000 when they returned a loss of 13.80%. Over the last 5 years the fund has only made a loss in 2000. And as at 30th September 2005 they had already returned 42.50%. So they also appear to be on track for another great year.
Ranked No.4 ?482.54%
Ranked in fourth place is a fund that invests in currencies seeking capital appreciation in the Euro with currency hedging against the U.S dollar. Over the last 5 years they have achieved a compounded return of 482.54%*. In other words if you had invested US$50,000 5 years ago, today you would have a balance of $241,270.
The fund is audited by Ernst and Young and the dollar value of funds under management is US$547.17 Million. Their best return was in 2001 when they achieved 62.03% and their worst return was in 2004 when they returned only 7%. Over the last 5 years the fund has never made a loss. And as at 30th September 2005 they had already returned 15.40%. So they appear to be on track for another reasonable (although not astonishingly high yielding) year.
Ranked No.5 ?481.25%
Ranked in fifth place is a fund whose objective is to provide shareholders with long term capital appreciation through investing in a diversified portfolio of securities within an emerging market. Over the last 5 years they have achieved a compounded return of 481.25%*. In other words if you had invested US$50,000 5 years ago, today you would have a balance of $240,625.
The fund is audited by KPMG and the dollar value of funds under management is US$21.45 Million. Their best return was in 2001 when they achieved 82.97% and their worst return was in 2000 when they returned a loss of 8.26%. Over the last 5 years the fund has only made a loss in 2000. And as at 30th September 2005 they had already returned 69.78%. So they appear to be on track for a new record year.
Results Summary
In summary, if you had invested $50,000 in each of the top 5 funds five years ago, today you would have $1,644,850 and you would be on target to add another $192,375 by the end of 2005.
To diversify further, many investors could have invested equally across the top 10 funds. In which case $50,000 invested in each of the top 10, five years ago, would have turned your $500,000 into $2,633,700 or an average total return of 526.74%*.
The top 10 funds combined have already achieved an average return of 59.23% as at 30th September 2005 and are tracking (if the results trend continues) to an average return of 78.97% by December 31st 2005.
Stay tuned to your inbox over the coming weeks as I send you more offshore updates through the Money Ideas newsletter, which will include:
Results of top Offshore funds year to date, over the last 3 years, & 10 years
Results of top Australian funds year to date, over the last 3 years & 5 years
An explanation of how to never risk more than between 1% & 3% of capital
Why fear of losing money (offshore or onshore) is related to knowledge
How to track your entire portfolio in less than 15 minutes per month
Again the purpose of this communication is to give you a sense of the benefits associated with being well informed.
Until next time, safe investing!
Feel free to reprint this article in its entirety in your ezine or on your site, as long as you do not modify the content and you include the resource box as listed below.
Al Beikoff is a teacher, investor and writer whose newsletter, Money Ideas, focuses on the thoughts and ideas we harbor about money. His tips, strategies and ideas on changing our thinking will help you change your world financially and in other ways. Subscribe to his ezine at http://www.best-offshore.com or contact him at alwyn@best-offshore.com.