Pie Funds Achieves Morningstar Five-Star Rating again

Pie Funds Achieves Morningstar Five-Star Rating For Second Time in Two Years

Pie Funds, a boutique investment manager and top-performing retail fund in New Zealand, has achieved a five-star rating from Morningstar in the 12 months to December 2010. This is a back-to-back win for Pie Funds, which also took the top spot in 2009.

Though one of the smaller fund management companies in New Zealand, with over $11 million in net assets, Pie Funds is at the top of the performance ladder. Morningstar figures show it returned 33.86% in the year to December 2010. Pie Funds invests in smaller companies in the Australian and New Zealand markets.

Despite its success, the road to the top has not been easy, says Pie Funds managing director Mike Taylor. “We have faced what seemed at the time almost insurmountable obstacles, such as the 2008 market crash and the subsequent fall in investor confidence.

“Our achievements come down to our ability to pick the right stocks, with a focus on small companies. Having a large cash position in 2008, moving to fully invested from mid-2009 and holding our nerve in 2010 – with things looking a bit dicey mid-way through the year – you have to almost be contrarian in your approach. This means buying something when it is flying under the radar and selling when it’s flavour of the month. “

Beginning with only a handful of investors and $3 million in 2008, Pie Funds’ focus still remains performance first, fund management second. “Build it and they will come,” says Mr Taylor. “This means that despite only having $11 million, we are the top-performing fund. Our strategy remains the same, to continue to outperform the market.”

Pie Funds has more than 130 investors, with a large portion of the investment coming from directors, shareholders, friends and family. “I still have to look everyone in the eye and take 100% accountability for the fund,” says Mr Taylor.

ENDS

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