There may be fewer competitors in the multi-sector category of the Fund Manager of the Year awards, but Assirt associate director Veronica Gullo says this category is harder to judge than others because “it’s more difficult to find a manager that is at least competent in every asset class it has on offer”.
The category is also less likely to produce any surprise winners, Gullo adds, because there are “not too many exceptional multi-sector managers out there and the existing ones have got all-round competencies that we know quite well”.
She says the research house is “not necessarily looking for a multi-manager that is very strong in all of the asset classes — because this is not that easy to find.
“Rather, we are looking for a manager we believe is at least competent in all asset classes and able to translate that competency into solid returns in its pooled funds.
“Typically a winning multi-sector manager will have a relatively solid investment grade rating across all asset classes, and be able to show it performed well over the past 12 months.”
The manager that most met these criteria this year was ING, Gullo says, describing it as “all-round quite a stable diversified manager this year”.
She says ING — which is a growth at a reasonable price (GARP) manager — is rated as “competent in asset allocation, Australian equities, and international equities”.
“We also rated ING as strong in Australian fixed interest and competent in international fixed interest, and we definitely see its process in this latter sector improving,” Gullo adds.
Eric Siegloff, ING’s director of tactical asset allocation and investment strategy, says the group’s investment approach is “built around a belief that active management can add value across all market cycles — the critical component being tactical asset allocation and stock selection.
“We recognise that changes in economic fundamentals and market expectations may give rise to asset class mis-pricing, and we seek to exploit these mis-pricing opportunities.”
According to the Mercer results for the year to the end of March, the ING Managed Growth fund returned 15.5 per cent, and the ING Balanced Fund 13.56 per cent (compared to about 14.2 per cent for the median manager).
Gullo says runner-up Perpetual is “a solid manager in most investment classes and its performance has reflected that”.
Perpetual is rated as “very strong in Australian equities, and competent in fixed interest, and cash and property”.
“As last year’s Fund Manager of the Year, as well as Australian equities category winner, we know that it is very good at managing that asset class and a lot of the other asset classes besides. It has been able to perform consistently in their balanced funds and growth funds.”
AXA was also named as a finalist in this award, with Assirt highlighting its ability to utilise its alliance with global investment manager Alliance Capital.
“That’s definitely been a benefit to them from the international equities point of view. They are also very strong performers overall,” Gullo says.
— Liam Egan
