Multi-managers improve risk management systems

westpac/funds-management/research-and-ratings/risk-management/

4 October 2013
| By Staff |
image
image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 6 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 5 days ago

TOP PERFORMING FUNDS