Active fund managers pay off in fixed interest sector
A Standard & Poor’s (S&P) analyst has said that investors who paid for active returns in the Australian fixed interest sector have been receiving them throughout 2010, as most managers outperformed the index last year.
“In our view, this has clearly been a good time to be in actively managed funds as there have been and continue to be a number of opportunities to add value through duration, curve, sector, and security calls,” analyst David Erdonmez said.
His comments followed the release of S&P’s fixed interest sector review, which found that all managers targeting above the UBS Composite Bond Index provided benchmark-beating returns to investors over the 2010 period.
Index managers Blackrock and Vanguard, as well as the index-agnostic Vianova had not delivered above the benchmark.
The researcher had rated 18 offerings this year, upgrading two funds, downgrading one, assigning one new rating and affirming its rating on the remaining 14 funds.
PIMCO’s Australian Bond and Australian Focus Fund, as well as Tyndall’s Australian Bond Fund retain S&P’s highest rating of five stars.
Recommended for you
Sydney-based alternative fund manager East Coast Capital Management has formed its first advisory council as it enters its next phase of growth.
With 40 per cent of advice practices looking to increase their ETF usage, the next frontier being embraced is smart beta ETFs with flows doubling in July, providers have said.
Australian ETFs saw flows of $5.8 billion in July, more than double the previous month, and adviser adoption is tipped to help total flows reach $50 billion by the end of the year.
Pinnacle’s London affiliate, Life Cycle Investment Partners, has secured over $15 billion in FUM in its first year and achieved profitability, the firm’s fastest affiliate to do so.
