Bermuda Investment Advisory Services Limited (BIAS) yesterday reported that its Global Equities Fund, issued by Cayman-based affiliate BIAS Global Portfolios SPC, has been awarded the maximum five-star rating by Morningstar Inc.

BIAS launched three mutual funds in December 2006, consisting of the BIAS Global Equities Fund (for growth at a reasonable price), the moderate risk BIAS Global Balanced Fund (for growth and income), and the low-risk BIAS Global Short Duration Income Fund (for income and stability).

Upon establishing a three-year track record in December (the minimum period to receive a Morningstar ranking) all three BIAS funds were immediately awarded four stars, a rating currently maintained by both the BIAS Global Balanced Fund and BIAS Short Duration Income Fund. Less than one third of funds globally reviewed receive a rating of four stars or higher.

The Morningstar rating system is a quantitative measure based upon past returns and volatility. Specifically, it measures total long term performance (net of all fees) adjusted for risk so that high-risk funds are taken down a peg or two, and low-risk funds are moved higher.

The risk-adjusted measure is then graded on a curve within each fund category. Morningstar awards five stars to 10 percent of the funds, 22.5 percent earn four stars, 35 percent take the three-star rating, 22.5 percent take two stars, and 10 percent earn one star.

While the high ratings from Morningstar indicate that the BIAS funds have outperformed their peers not only in Bermuda but also globally, BIAS global portfolios director Mark Melvin said that the real differentiating factor was the company's success in protecting investor capital during market setbacks, such as the latest 16 percent decline in global equities since mid-April.

"We were thrilled to receive such high ratings from an independent third party like Morningstar," he said. "I am very proud of the job our portfolio management team has done for our clients."

In addition to principals Robert Pires and Mr. Melvin, BIAS' portfolio management team includes Bryan Dooley, Kent Turner, Ingela Persson, and Ryan McWhirter.

BIAS Global Portfolios SPC's funds require a minimum investment of $25,000 and are geared towards captive insurance companies, trust companies, corporate entities, and high-net-worth individuals.

The funds are also tailored to young professionals who are committed to building wealth over time through participation in the BIAS Wealthbuilder programme, which facilitates automatic contributions by clients on a monthly or quarterly basis, according to the investment specialists.