ETFs take lead in Australian equity income sector
Three of the top four Australian equity income funds were exchange-traded funds, contrasting the Australian equity sector where active funds dominated the top five.
According to FE Analytics, within the Australian Core Strategies universe, the Australian equity income sector returned 18.83%, year to 29 November, 2019.
The best performing funds were UBS IQ Morningstar Australia Dividend Yield E (32.88%), Ausbil Active Dividend Income Wholesale (28.75%), BetaShares Legg Mason Real Income ETF (27.08%), BlackRock iShares S&P/ASX Dividend Opportunities ETF (26.14%) and Legg Mason Martin Currie Equity Income X (23.57%).
UBS replicated the performance of the Morningstar Australia Dividend Yield Focus Index, Betashares replicated the S&P/ASX 200 and BlackRock replicated the S&P/ASX Dividend Opportunities Accumulation Index.
Top holdings for UBS were Wesfarmers (10.10%), Woolworths (7.7%), Transurban (7.2%), IOOF (5.5%) and Sydney Airport (5.2%), as at 30 November, 2019.
Top holdings for Ausbil were CBA (10.01%), CSL (8.52%), HBP (7.99%), Macquarie Group (4.66%) and NAB (3.62%), as at 31 December, 2019.
Betashares’ sector weightings were retail – property (29.3%); other – property (26.2%); utilities (18.8%); telecom, media and technology (15.1%); industrial – property (5.6%) and offices – property (5%), as at 31 December, 2019.
BlackRock’s top holdings were Wesfarmers (10.83%), Woodside Petroleum (10.29%), CBA (9.83%), Rio Tinto (9.76%) and BHP (9.48%), as at 31 December, 2019.
Legg Mason Martin Currie’s top holdings were JB Hi-Fi (4.42%), Telstra (3.88%), Australian Gas Light Company (3.79%), Wesfarmers (3.65%) and Woodside Petroleum (3.46%).
Best performing Australian equity income funds v sector over the year to 30 November 2019
Recommended for you
There is one specific risk that is a significantly higher concern for financial services directors compared to companies overall and is impacting their risk appetite, according to the AICD.
Global fund managers are shunning bonds, with the asset class seeing the largest drop in allocations in more than 20 years.
Australian Ethical has seen its funds under management reach $10 billion, driven by organic customer growth and superannuation contributions.
Financial advisers will have access to private equity investments run by WTW for the first time as it launches a pooled fund to provide savers with access to traditionally institutional assets.