Ipac takes advantage of small and mid cap opportunities
Ipac Investment Services has announced changes to its Australian equities portfolio, which include more diversification across stock size and reduced turnover.
Ipac chief investment officer Jeff Rogers said Ipac had altered its portfolio to take advantage of small and mid cap opportunities.
“We think the advantage is often better and bigger in the mid to small cap companies that are less covered,” Rogers said.
However, he said that “doesn’t mean we’re going to overweight them".
Rogers said Ipac had designed a mandate that allowed manager skill to be utilised in areas where their information advantage is greatest.
Its Australian equity portfolio included four managers, BGI and Schroder, which were in Ipac’s previous portfolio and would cover the broad market, and Lazard and GMO, which would concentrate on the mid to small cap market.
Lazard and GMO would still hold large companies in the portfolio, but they’ll be holding them at very much benchmark weights, Rogers advised.
“All the ideas that [Lazard and GMO] have will play out in the mid and small cap part of the portfolio,” Rogers said.
The transition to the new structure took place in September.
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.