Fund managers less innovative in 2010
An overwhelming majority of the total new Australian managed funds launched in 2010 were not new investment strategies, according to research house Morningstar.
Morningstar stated that only 35 of the 562 new funds (6.66 per cent) represented new ways of managing money, adding that the percentage of managed funds with new investments strategies has been in a steady decline since 2007, when 22.65 per cent were new investment strategies.
AMP accounted for over half of the total new Australian funds created (299), followed by OnePath with 161 and Colonial First State with 20. However, the innovators included Australian Ethical, which launched two Climate Advocacy funds, and AXA, which launched a new emerging markets fund. Other funds that Morningstar stated were among the more interesting of the new investment strategies included Ausbil Dexia’s domestic microcap fund, as well as Grant Samuel Tribeca and Zurich domestic smaller companies funds.
Looking at other trends, Morningstar stated that over 93 per cent of total new funds launched in 2010 were for the retail market, slightly up from 2009, and all new funds were comprised of 43 per cent investment trusts, 29 per cent superannuation funds and 28 per cent allocated pensions. Morningstar stated that the number of superannuation funds were almost the same as the previous year, although new allocated pensions were up from 123 in 2009 to 158 in 2010.
Morningstar stated that fund managers continued to cater primarily for investors’ preferences for multi-asset class and domestic share funds. The most popular world share funds were those diversified funds investing across world share markets, although funds offering exposure to emerging markets remained popular with 18 additional emerging market funds launched in 2010. Morningstar noted that cash funds were down “markedly” on previous years and fund managers had avoided launching new mortgage funds in large numbers due to continuing liquidity constraints.
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