Fund manager of the year – Income trusts
1st: Norwich Union
2nd: Citicorp
3rd: ANZ
A continuing environment of low interest rates has made outperformance in income trusts progressively more challenging.
But this year's winner, Norwich Union, has proved that focus on two key areas - mortgage funds and bond funds - can do well under the toughest conditions.
"Good fixed interest and mortgage managers can add value in this sector," says Patrick Bennett, ASSIRT's manager of research. "But the difference between a good and a bad manager in this category can be a matter of basis points."
Norwich Union improved on its second place last year to take this year's income trust award. According to ASSIRT, the Norwich Investment Trust Mortgage Plus No 2 ($103 million) performed solidly, while Mortgage Plus No 3 ($39 million) outperformed significantly.
Norwich's Australian Fixed Interest Investment Trust, with $54 million under management, returned well above the cash rate for both one-year and three-year periods, with its best returns over three years.
Runner-up Citicorp had just a single product offering in this category, the $112 million CitiIncome Investment Portfolio, which had extremely consistent outperformance over one and three years. Third-placed ANZ did well with its $25 million ANZ Bond Trust and huge $621 million ANZ Mortgage Fund.
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