Growth returns to a neutral market

Growth styled managers have ousted their value counterparts as the better performing investment style for the first time in nearly three years according to the latestInTechSector Survey of share managers.

However InTech portfolio manager Chris Thompson says despite growth overtaking value on a rolling 12-month basis as measured by the Macquarie Indices, six of the top seven managers participating in the survey remain value managers.

“Style bias is becoming less of a dominant factor in manager returns and we would expect to see a mix of growth and value managers near the top in forthcoming surveys,” he says.

Thompson says Australian shares were the strongest major asset class in August generating the survey’s sixth successive month of positive monthly returns.

“This is a remarkable performance considering the uncertainty that prevailed in the first quarter of 2003,” he says.

However listed property funds were all negative, while bond funds had flat returns through the month due to bond yields continuing to rise.

InTech says the survey data continues to suggest that active managers are justifying their existence, although “over the last 12 months, the median manager in all major asset classes has added solid value over their benchmark”.

The InTech survey rated the top performers for August as being Dimensional (6.2 per cent),Portfolio Partners(4.8 per cent) and Constellation (4.8 per cent). On a year to date basis, the top performers are rated as Independent (13.7 per cent),Tyndall Value(13.1 per cent) andLazard(13.3 per cent).