Australian broad caps have kicked Aussie small/mid caps off their pedestal, with just over a third of funds in the Australian Core Strategies Equity – Australia sector rated in the top two Crowns in the bi-annual Crown Ratings recalculations.
Of the 199 funds that were rated, 27 were awarded a five-Crown rating, and 34 were awarded a four-Crown rating, as compared to 22 that were given a five-Crown rating and the 37 that were given a four-Crown rating in the last calculation.
Four Macquarie funds in the Australian equity sector maintained their five-Crown rating from the previous calculations and two BlackRock funds increased their rating from four to five.
Bennelong Australian Equities received a five-Crown rating, up from four at the last calculation, with fund manager Mark East attributing good performance to a selective portfolio focused on good quality growth companies.
While the manager believes that’s where reliable returns lie, he said he’s looking to strong international companies too.
“One area where we do think there are good opportunities is in a number of strong global franchises, where the company is leveraging valuable intellectual property, a brand or some other competitive advantage into profitable growth offshore,” he said. “These companies should continue to compound earnings quite nicely.”
Head of investment strategy and chief economist at AMP Capital, Shane Oliver, said the Australian share...