Big appetite diminishing
The Australian sharemarket's appetite for large companies with strong growth prospects appears to be diminishing.
The Australian sharemarket's appetite for large companies with strong growth prospects appears to be diminishing.
In the past six months, value stocks have performed better than growth stocks while small capitalisation stocks have out performed large cap stocks.
According to figures released by Intech, Australian value stocks have returned 8.2 per cent in the six months to July 31 compared to growth stocks, which have returned 4.6 per cent. Small cap stocks have gained 8.4 per cent while large caps have returned 5.9 per cent.
And the change in fortunes has dragged down some of the top performers in Aus-tralian equities over recent times. <I>Money Management's<I> fund manager of the year, Colonial First State, has seen a reversal of fortunes over the past three months. While its flagship Colonial First State Imputation Fund is still the number one performer over the past year, it has slipped to the back of the field in the past three months to 46th of 49 funds measured by Intech. Other top per-formers such as Credit Suisse and Mercantile Mutual have also suffered over the past three months.
On the other hand, fund managers who have languished at the bottom of perform-ance tables over the past year or so are making a resurgence.
Hambros Hopkins is the top performer over the three months to July 31 while Mac-quarie and Tyndall are hot on their heels.
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
