Mercer researches the alternatives
MercerInvestment Consultingwill now rate alternative active Australian fixed income products, choosing the option over conventional active Australian fixed income products, which it ceased recommending to its clients last year.
Mercer clients will now receive research and recommendations on alternative products that, according to Mercer head of fixed income research Simon Romijn, will offer greater value to institutional investors compared to the conventional fixed income products.
Romijn says that fixed income managers are becoming “more creative” in response to criticism that conventional management is too focused on interest rate positioning, and fails to deliver value for investors.
According to the group, conventional active managers have found it harder to generate excess returns due to the increasing difficulties in anticipating interest rate changes in the current low inflation environment.
Romijn said there was evidence that the alternative products were superior, and would offer investors a higher level of value over time.
“One US manager has added value relative to the Australian fixed income benchmark by generating profits from its best global investment ideas. They achieve these results by using a mix of derivatives and non-benchmark strategies,” Romijn says.
Recommended for you
Professional services group AZ NGA has made its first acquisition since announcing a $240 million strategic partnership with US manager Oaktree Capital Management in September.
As Insignia Financial looks to bolster its two financial advice businesses, Shadforth and Bridges, CEO Scott Hartley describes to Money Management how the firm will achieve these strategic growth plans.
Centrepoint Alliance says it is “just getting started” as it looks to drive growth via expanding all three streams of advisers within the business.
AFCA’s latest statistics have shed light on which of the major licensees recorded the most consumer complaints in the last financial year.
