Ipac takes advantage of small and mid cap opportunities
Ipac Investment Services has announced changes to its Australian equities portfolio, which include more diversification across stock size and reduced turnover.
Ipac chief investment officer Jeff Rogers said Ipac had altered its portfolio to take advantage of small and mid cap opportunities.
“We think the advantage is often better and bigger in the mid to small cap companies that are less covered,” Rogers said.
However, he said that “doesn’t mean we’re going to overweight them".
Rogers said Ipac had designed a mandate that allowed manager skill to be utilised in areas where their information advantage is greatest.
Its Australian equity portfolio included four managers, BGI and Schroder, which were in Ipac’s previous portfolio and would cover the broad market, and Lazard and GMO, which would concentrate on the mid to small cap market.
Lazard and GMO would still hold large companies in the portfolio, but they’ll be holding them at very much benchmark weights, Rogers advised.
“All the ideas that [Lazard and GMO] have will play out in the mid and small cap part of the portfolio,” Rogers said.
The transition to the new structure took place in September.
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
