Rough trot for active fixed interest managers

asset-management/funds-management/colonial-first-state/interest-rates/

9 July 2012
| By Staff |
image
image image
expand image

Active managers had it tough in the first half of 2012 as issues in peripheral Europe continued to reap havoc on fixed interest markets, according to Standard & Poor's (S&P) half-yearly fixed interest peer group review.

S&P analyst David Erdonetz said performance had not recovered since 2010, when all managers targeting the UBS Composite Bond Index had achieved above benchmark returns. 

S&P downgraded a number of global fixed interest funds at the end of 2011, blaming poor performance on market volatility, short duration and overweight credit calls.

Duration continued to dictate S&P's core offerings in 2012, along with managers' ability to predict future paths of interest rates. Credit-based offerings had been susceptible to widening spreads in a risk-off environment, the report said.

Bentham Asset Management and PIMCO were the only global fixed interest funds to receive five-star ratings, which they also managed to hold throughout 2011.

S&P awarded Tyndall Investment Management, PIMCO, Colonial First State Global Asset Management and AMP Capital Investors five-star ratings for their Australian fixed interest offerings, while OnePath's Wholesale Diversified High Yield Trust and Wholesale Diversified Fixed Interest Trust remained on hold.

The only notable team change, according to S&P, was the addition of former ING Investment Management staff members, Rachel O'Connor and credit analyst Thomas Wu to the UBS Asset Management team.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months ago

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

7 months ago

Commonwealth Bank has formally dropped to zero advisers following LGT Crestone’s acquisition of its advice arm – some six years on from the Hayne royal commission. ...

3 weeks 6 days ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

1 week 3 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

2 weeks 5 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
3