Volatility causes mixed year for Aussie large cap managers
Standard & Poor's has released its Australian equity large-cap sector report, which highlighted the fact that increased volatility in the sector had enhanced opportunities for outperformance, although some managers also found there was an increased potential for underperformance.
Seven of the 56 managers covered received the highest possible five-star rating. The 123 capabilities covered included 14 separately managed accounts (SMAs), and there were 13 upgrades across 10 managers and nine downgrades across seven managers. Seven funds remain ‘on hold’.
Aside from the increased dispersion in performances caused by heightened volatility, the report also found fewer managers were able to consistently meet long-term performance objectives, raising the question of whether the outperformance would be repeatable in a normalised environment, according to S&P Fund Services analyst James Gunn.
The report also observed a more active approach among managers in general, with selective participation in market recapitalisation contributing to strong performance.
“We continue to highly regard those managers sufficiently resourced and skilled to undertake their own in-depth research, while understanding both the benefits and limitations of external research,” the report stated.
S&P also remained wary of performance fees applying to broader-based portfolios in the absence of a significantly reduced management fee, or a meaningful limit on stated capacity.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
