Percival Stanion enters the ratings for the first time with an A rating for his three-year risk-adjusted performance on the Baring Dynamic Asset Allocation fund. The fund is a mixed-asset fund, and Stanion aims to achieve an absolute return of 4% in excess of cash based on the three month sterling Libor, which is the rate at which banks lend to one another. 'Risk adjusted' means we reward managers who deliver better returns than rivals who have taken a similar level of risk. Over the past three years he has returned 20.43% with the fund.
Over the past quarter, Stanion did not participate in the equity rally that took place and had minimal exposure to Europe and Asia, which were the two strongest markets. The biggest performance contributors to his portfolio came from UK equities, which earned 70 basis points. Within his bond holdings, the UK contributed 40 basis points and his holding in gold also helped bolster the returns in his portfolio. The main detractors in his portfolio were overseas bonds, due mainly to the poor returns from US long bonds, which sold off rapidly as tension in Europe eased.
The strongest individual stock performances came from his holdings in Source Physical Markets Secured Gold-linked Notes and the iShares S&P 500 USD exchange-traded fund. At the end of September these stocks claimed a place in his top-10 holdings, with weightings of 6.3% and 3.8% respectively.