Lonsec backs boutique small cap managers
By Ben Abbott
Boutiquemanager Eley Griffiths Group, headed by formerINGportfolio managers Brian Eley and Ben Griffiths, has topped a review of Australian small cap products by research houseLonsec, with the only ‘highly recommended’ rating awarded.
The research house says it was impressed by Eley Griffiths’ quality process, experience and ownership by its founders, as well as the outsourcing of all non-investment related functions.
Lonsec investment analyst Anthony Pesutto says all 15 managers reviewed received either a ‘highly recommended’, ‘recommended’ or ‘investment grade’ rating, in a grading of only the top managers in the sector.
Invesco,HSBC Asset Management,Deutsche Asset Management,AMP Capital Investors,Australian Unity(Acorn Capital Microcap) andChallenger Financial Serviceswere all given a ‘recommended’ rating.
As part of the review of the entire small cap sector, Lonsec says it favours boutique small cap managers and managers with lesser funds under management.
Lonsec says the group does not propose a size limit for small cap funds, but ratings will be unlikely to rise above ‘investment grade’ if a fund exceeds $700 million, or 1.5 per cent of the capitalisation of the small cap market.
Lonsec says the average manager reviewed by Lonsec was up 35.7 per cent for the year to November 2003, while the S&P/ASX Small Ordinaries Accumulation Index returned 30.3 per cent in the same period.
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.
