Fund manager of the year – Income trusts
1st: Norwich Union
2nd: Citicorp
3rd: ANZ
A continuing environment of low interest rates has made outperformance in income trusts progressively more challenging.
But this year's winner, Norwich Union, has proved that focus on two key areas - mortgage funds and bond funds - can do well under the toughest conditions.
"Good fixed interest and mortgage managers can add value in this sector," says Patrick Bennett, ASSIRT's manager of research. "But the difference between a good and a bad manager in this category can be a matter of basis points."
Norwich Union improved on its second place last year to take this year's income trust award. According to ASSIRT, the Norwich Investment Trust Mortgage Plus No 2 ($103 million) performed solidly, while Mortgage Plus No 3 ($39 million) outperformed significantly.
Norwich's Australian Fixed Interest Investment Trust, with $54 million under management, returned well above the cash rate for both one-year and three-year periods, with its best returns over three years.
Runner-up Citicorp had just a single product offering in this category, the $112 million CitiIncome Investment Portfolio, which had extremely consistent outperformance over one and three years. Third-placed ANZ did well with its $25 million ANZ Bond Trust and huge $621 million ANZ Mortgage Fund.
Recommended for you
Stronger fund flows and a shift to higher-margin funds has benefitted GQG Partners lately but investors are underestimating the risk of performance mean reversion, according to Morningstar.
Australia saw one of the most severe underlying dividend declines in the world in the second quarter of 2024, according to Janus Henderson.
With more fund managers looking to outsourced providers, two experts examines how this is affecting the local talent landscape in Australia for graduates looking to enter the sector.
Lazard Asset Management has expanded its investment menu for Australian investors with a new Japanese equity fund.