No asset class spared from poor performance

crowns Optimix AXA Advance Russell BT Perpetual amp MyNorth Bendigo OnePath IML

4 September 2020
| By Laura Dew |
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No asset class was exempt from poor performance in this edition of the FE fundinfo Crown Ratings with equity, bond and multi-assets sectors all seeing high volumes of 1 Crown-rated funds. 

Within the Australian Core Strategies universe, the worst-affected sectors were both mixed asset ones with the mixed asset – moderate and mixed asset –cautious sectors both seeing over 40% of their funds receive a 1 Crown rating. 

In the mixed asset – moderate sector, 55% of funds received a 1 Crown rating. There were 65 funds in this sector and 36 funds were only rated with 1 Crown. 

There were seven funds which were downgraded from 2 Crowns to 1 but the majority had retained their 1 Crown rating. 

The downgraded funds were Optimix Wholesale Moderate Trust, AXA Generations DefensiveAdvance Moderate Multi BlendRussell ConservativeBT Wholesale Multi-manager ConservativePerpetual Select Investments Diversified  and AMP Experts Choice Conservative.

In the cautious sector, some 41% of funds received only 1 Crown and the three funds which were downgraded were MyNorth Index DefensiveBendigo Wealth Defensive Wholesale  and Onepath Wholesale Capital Stable Trust.

The performance of these two sectors compared to just 6% of funds in the mixed asset –aggressive sector receiving a 1 Crown rating and 7% in the mixed asset – growth sector, indicating investors were being penalised by remaining in the balanced or cautious version which is often a default option for investors.  

Meanwhile, the Australian equity income sector saw 44% of funds receive a 1 Crown rating and the diversified credit sector had 40% of its funds with 1 Crown. 

The diversified credit sector included two funds, Bentham High Yield and PIMCO Capital Securities Wholesale, which were downgraded from 5 Crowns to 1.  

There was just one fund in the Australian equity income sector which received a downgrade in this rebalance. This was the  IML Equity Income fund which had previously been rated as 2 Crowns in the previous edition of the report.  

The sector with the highest volume of 1 Crown funds was the global equity sector at 58 funds, however this only represented 22% of the total sector. 

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