Multi-managers improve risk management systems


As part of its latest diversified sector review, Zenith Investment Partners has observed significant progress by multi-managers in the areas of investment implementation and risk management.
In total, 16 funds received a rating as part of the review, with Russell the only manager to score a 'highly recommended’, an upgrade from last year.
Zenith also increased its conviction rating when it came to MLC’s options suite. MLC also maintained its 'recommended’ rating.
According to Zenith, sector participants have been moving to a more tailored approach to portfolio construction, with derivatives being utilised to bolster active asset allocation strategies.
“Zenith believes this evolution in process represents an acknowledgement by managers of the limitations associated with gaining asset class exposures on a physical basis and through internally managed co-mingled trusts,” the researcher stated.
“These include difficulty in tailoring portfolio exposures and in improving portfolio efficiency.”
Zenith stated that risk systems were flexible enough to permit investment personnel to form a greater appreciation of the multi-faceted risk associated with multi-asset strategies.
In other findings, Westpac’s specialist asset management business Advance received a recommended rating for its wholesale multi funds.
Zenith will release a report summarising the findings of the multi-sector review, along with its single manager and real return categories, at the conclusion of its diversified sector review.
Recommended for you
Index provider MSCI has unveiled two measures to make it easier for financial advisers and wealth managers to access transparent insights into private assets.
Vanguard has announced a strategic alliance with two US alternative asset managers to develop multi-asset solutions for financial advisers which combine public and private markets.
Clime Investment Management has enacted a range of growth initiatives to boost the firm’s reach with wholesale investors and a new approach targeting the retail market.
Generation Development Group, parent of Generation Life, has entered the ASX 200, having grown its funds under management to almost $4 billion.