Nucleus Wealth says 'remain cautious'
Wealth and superannuation manager, Nucleus Wealth, has said it will remain cautious, as it managed to de-risk portfolios before the markets went into a tailspin, which helped five of its six funds remain in positive territory for 12 months to 30 June, 2020.
Both Nucleus’ growth funds, Tactical Growth and Core International, managed to outperform their peers while its other three funds, Tactical Income, the Tactical Accumulation and the Tactical Foundation, ranked first, sixth and sixth, respectively, in their index categories, according to Morningstar.
The Core Australia Fund was the only fund to slip backwards, the firm said.
Nucleus Wealth’s head of investments Damien Klassen described the past 12 months as difficult, especially February when the impact of the COVID-19 pandemic first became apparent.
“Working on the premise that prevention is better than the cure, we acted quickly to de-risk our portfolios before the markets went into a tailspin, thus ensuring our clients were protected from the market carnage that occurred once markets realised the gravity of the pandemic and its inevitable economic fallout,” he said.
“We still remain cautious, and although that has meant missing out on some of the subsequent market upswing, it has still allowed our portfolios to outperform significantly over the year without our investors experiencing the extreme market volatility of many other fund managers.”
AUTHOR
Oksana Patron
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
