van Eyk rejects 19 funds in Aust equities review

van eyk financial planning van eyk research research house chief executive

9 August 2013
| By Staff |
image
image
expand image

van Eyk Research has rejected 19 Australian equities funds in its review of the sector, claiming they were not sufficiently competitive, while awarding five funds its top 'AA’ rating. 

The research house said it looked at a total of 69 strategies as part of its assessment of long-only Australian equities funds. Five funds which were invited to take part declined, alongside the 19 funds which were screened out of the review. 

van Eyk head of manager research Matthew Olsen said the 19 managers screened from the review suffered from one or more of a number of failings including insufficient levels of active risk in the portfolio, which meant the managers and the fund were less likely to create excess return for investors. The funds also displayed insufficient manager skill and an investment process that differed little to the rest of the market. 

Of the funds that were included in the review, five scored an AA rating, 19 scored an A rating, 18 scored a BB rating and three funds scored a B rating, with the managers reviewed showing growth, neutral, value and quantitative investment styles. 

The research house said it was making public the news that one-third of managers were either removed or chose not to participate, as it felt it was necessary to disclose the complete sample from which the recommended funds were chosen. 

van Eyk chief executive Mark Thomas said this would allow users of the research to judge the selective nature of the ratings process and its outcomes. At the same time planners could see what happened to all funds in the review, while fund managers would be discouraged from shopping for ratings with their funds. 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

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

3 weeks 4 days ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month ago

Insignia Financial has confirmed it is considering a preliminary non-binding proposal received from a US private equity giant to acquire the firm. ...

1 week 3 days ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

5 days 20 hours ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

5 days ago