Large-cap managers go global
Large-cap Australian equity managers are increasingly positioning their portfolios to not only seize Australian economic growth, but global growth, with over 30 per cent of revenues coming from the US, Zenith concluded.
The 2015 Australian Large Companies Sector Review, which looked at 191 Australian equity large cap funds, showed that despite weak levels of global and domestic growth over the last 12 months, the S&P/ASX300 Accumulation Index returned 10.2 per cent for the 12 months ending 30 April.
The average manager on Zenith's approved product list outdid the index by around 0.3 per cent, net of fees.
Senior investment analyst, Quan Nguyen, said Australian managers were increasingly working in a global setting.
"The globalisation and interconnectivity of markets in general means that the average Australian listed company doesn't just do business in Australia," Nguyen said.
"Where a company is listed versus where a company does business and generates revenues is a concept that the majority of Australian equities managers are fully embracing, particularly given Australian economic growth has been relatively benign."
Zenith compiled the top 10 overweight positions from its rated managers, and deciphered the source of revenues of the holdings by region, and found that in contrast to the S&P/ASX300 index, nearly 20 per cent of revenues were coming from the Asia Pacific, 19 per cent from Europe and 18 per cent from Australia.
In contrast, looking at the S&P/ASX300 index, Australia comprised of the majority of the revenue at 60 per cent, while the Asia Pacific accounted for nearly 10 per cent, USA for eight per cent, and China for six per cent.
AUTHOR
Malavika Santhebennur
Recommended for you
AUSIEX has announced it will acquire FIIG, a specialist fixed income provider with $4.5 billion in funds under advice.
Platinum Asset Management has announced it is in discussions with a global alternatives fund manager regarding a possible merger to create an $18 billion firm.
JP Morgan Asset Management has appointed an ETF specialist from Vanguard as it seeks to expand its ETF range.
The alternative asset manager has expanded its Singapore office with a head of Asian distribution, representing a “critical step” for the Asian business, where it is seeking to launch new offerings.
