Flexing a 'bold' muscle bring success

Multi-Sector

Winner 

IOOF MultiMix Balanced Growth Trust

Finalists

BT Active Balanced Wholesale Trust 
MLC Wholesale Horizon 4 Balanced Portfolio

From taking large positions, to being the first investors in companies, the IOOF MultiMix Balanced Growth Trust fund has had great success which catapulted them to be Money Management/Lonsec's Multi-Sector Manager of the year.  

The fund outperformed their peers over a one, two, three and five year period (by 2.65, 2.02, 2.17 and 1.12 per cent respectively). IOOF said it was because they were often the first "seed investors in companies... and weren't afraid to take large positions when they had high convictions".  

Portfolio manager, strategy and international equities, Stanley Yeo, said this was not the "norm" as most multi managers usually looked for three-year track records before they invested.  

"We set the trend and investors [fund managers] tend to follow afterwards, as they see a large organisation like us, making that first step", said Yeo.  

"Managers in their start-up phase tend to do a lot better... but no one wants to be that first mover as everyone is watching everyone else... but we don't care, we believe in our own judgement," he added.  

Chief investment officer, Steve Merlicek, also brought in a new team six years ago, which implemented a dynamic asset allocation that added an extra one per cent every year.  

In that time Lonsec's rating of IOOF climbed to the "top quartile of funds, up from the bottom fourth quartile of funds", Yeo said.  

He said not only was having the right team crucial, but a team who were rewarded for "successful performance" for investors helped.  

Appearing as a finalist was BT Investment Management, with its Active Balanced Wholesale Trust, which generated a 31 per cent "of return outcomes".  

The firm's head of diversified strategies, Martyn Wild, said the success was from their positioning in equities, alternatives and active management, with "a tactical over and underweight position" in key asset classes.   

Another finalist was MLC, with its Wholesale Horizon 4 Balanced portfolio, which earned its success from being "a pioneer in real return investment", the firm said.