Platinum, Magellan and Mosaic lose to smaller funds
The Ellerston Global Equity Managers Fund (Ellerston Fund) has managed to outperform Platinum International, Magellan and Mosaic in both returns and volatility, proving size really doesn’t matter.
Money Management analysed the returns and volatility of all funds in the global equities sector, and found the Ellerston Fund was a small, $80 million fund sitting in the top quartile for returns and volatility.
The Fund has a focus on risk and capital preservation, with the absolute return, qualitative investment strategy is designed to generate superior returns over the long-term and minimise risk.
Using a high conviction strategy combining rigorous fundamental analysis with a top down macroeconomic assessment of market conditions and outlook, it managed to retrieve over five per cent more in returns than its peers in an approximately two per cent less volatile environment.
The fund has cumulative returns of 15.49 per cent at a volatility of 7.88 per cent, as opposed to the sector average of 8.31 per cent returns at 14.05 per cent volatility.
The chart below illustrates the performance of the Ellerston Fund in comparison to the larger global equities funds exceeding $1 billion in funds under management over three years to last months-end.
Despite a place in the top quartile, Platinum’s $11 billion International C Fund only produced returns of 10.15 per cent with a volatility of 9.61 per cent.
Mosaic’s $1.8 billion Strategic International Fund dropped to the second quartile for performance, with total returns of 9.14 per cent and volatility of 9.36 per cent, while Magellan’s Global Hedged Fund sat in the third quartile with returns of 8.58 per cent at volatility of 9.08 per cent.
IOOF’s $200 million MultiMix International Shares Fund similarly outdid it’s peer group, sitting just under Ellerston for returns and volatility.
AUTHOR
Anastasia Santoreneos
Recommended for you
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.
Research by Morningstar has found fixed income funds are bucking a general trend around managed fund fee dispersion with a smaller fee dispersion compared to equity ones.
As investors seek to diversify their portfolios, the naming of bond labels has broadened out to include green, social and impact bonds, according to the annual RIAA report.
