Seven funds consistently given top rating


While high-performing funds over a period of time look great, there are few funds that can consistently outperform and there are only seven funds that have been given a 5 Crown rating in every ratings rebalance since August 2017.
The funds are Macquarie Australian Small Companies, Cromwell Phoenix Opportunities, IOOF MultiMix Growth, IOOF Balanced Investor Trust, Crescent Wealth Property Retail, Legg Mason Western Asset Conservative Income X, and IOOF Strategic Cash Plus.
Two of the seven funds were in the Australia small/mid cap sector with Macquarie Australian Small Companies performing best at 44.4%, and followed by Cromwell Phoenix Opportunities at 28.4%, over the three years to 30 June, 2020.
The Macquarie Australian Small Companies latest factsheet said its three largest contributors were mineral companies as gold and copper prices rallied.
“The recovery in the Australian and global markets continued throughout July, with some June quarter data beating expectations and some positive results regarding the early-stage development of a COVID-19 vaccine,” it said.
“Despite this, economic uncertainty increased as many economies, including the US and Australia, struggled to contain a resurgence in case numbers and enforced unprecedented lockdown measures in areas deemed to be hotspots.”
Crescent Wealth Property Retail fund was the only consistently top-rated property fund which returned 16.98%.
Two were under the cash enhanced – Australian dollar sector with Legg Mason Western Asset Conservative Income X returning 6.39% and IOOF Strategic Cash Plus returning 5.35%.
IOOF’s MultiMix Growth fund returned 23.7% and the third IOOF fund that had been consistently top rated was its Balanced Investor Trust fund at 20.3%.
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.