Macquarie drops GARP for style neutral
MacquarieFunds Managementwill shift its investment style from Growth at a Reasonable Price (GARP) to style neutral in its Australian equities portfolios, resulting in the departure of head of active equities, Peter Mouatt.
Mouatt’s role will be filled by head of style neutral equities Patrick Hodgens, who will also take on the role of head of Australian equities, with the remainder of the GARP team to be redeployed in the group.
Active equities division director Stephen Giubin will also transfer to the style neutral team as a senior portfolio manager and head up qualitative research and management of the resources funds.
Macquarie Funds Management group head David Deverall says the GARP approach is only in use for two per cent of its overall funds under management and for 11 per cent of its Australian equities funds under management.
The shift in investment style will affect Australian equity investments with small cap, imputation, balanced and capital stable all to make the change, with the investment style for fixed interest, property and alternative assets remaining unchanged.
Deverall says the shift would allow the manager to concentrate on the growing business under the style neutral model, which already has $3.4 billion in funds under management with the style and covers the range of Australian equity funds on offer through the group.
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.