Three funds run by asset management firm LOM outperformed benchmark figures in the second quarter of the year, the firm said today.

The LOM equity growth fund delivered a net total return of 4.16 per cent compared to the MSCI world Stock Index, which went up by 3.38 per cent. while the Standard & Poors Fixed Income Fund rose by 3.09 per cent over the same period.

Bryan Dooley, senior portfolio manager and general manager of LOM Asset Management said: “We stated in our last manager report that we see potential for further equity market progress as long as the global reflation scenario remains intact and central banks do not act too rashly in reducing monetary stimulus.

“So far, our base case appears to be unfolding. In this environment, we are paying strict attention to valuations on both the buy and sell side.”

Mr Dooley added that the fund “was held back modestly” by currency headwinds as the US dollar softened, but that it had benefited from “well-positioned sector weightings and strong security selection.”

The firm’s fixed income fund went up 1.21 per cent in the second quarter, above the 0.64 per cent recorded by its benchmark, the one to five year Government/Corporate Index. The excess return on the LOM fund of 0.57 per cent was net of all fees and expenses.

Mr Dooley said: “For the first half of the year, the fixed income fund achieved a net total return of 2.92 per cent, exceeding the benchmark return of 1.13 per cent. Comparative returns for three and five-year time periods also stack up well against the benchmark and the universe of funds with similar mandates.

“Looking ahead, we see ultra-loose global monetary policy likely coming to end, making for a more challenging fixed income environment.

“However, this is also the time when active management can make a substantial difference for investors.”

The LOM stable income fund ended a positive quarter despite an uptick in interest rates which caused a sell off in longer duration fixed income securities at the end of June.

On a one-year basis, the Stable Income Fund rose by 6.34 per cent which compared to the benchmark return of 5.43 cent.

The fund return also includes a monthly dividend of 0.03 per unit, which translated into a current yield of 3.26 per cent on the current net asset value price.

Scott Lines, LOM Group CEO, said “We are happy to report the strong performances of three of our flagship funds during quarter two.

“These results reflect the work of our talented team of advisers and asset managers who are committed to offering best-in-class strategies across a wide spectrum of client risk profiles.”