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
A new funds distribution business has launched in Australia, seeking to bring institutional offerings to the wholesale market and led by co-founder of Jamieson Coote Bonds.
Higher interest rates could be on the cards for 2026 after monthly CPI inflation for October showed an increase of 3.8 per cent.
Global actively managed ETF assets hit a record high in October, according to independent research and consultancy firm ETFGI, breaking the record set the previous month.
Federation Asset Management has appointed an investment director and head of responsible investments to support ESG integration strategy across the firm.
