Platinum, Magellan and Mosaic lose to smaller funds
The Ellerston Global Equity Managers Fund (Ellerston Fund) has managed to outperform Platinum International, Magellan and Mosaic in both returns and volatility, proving size really doesn’t matter.
Money Management analysed the returns and volatility of all funds in the global equities sector, and found the Ellerston Fund was a small, $80 million fund sitting in the top quartile for returns and volatility.
The Fund has a focus on risk and capital preservation, with the absolute return, qualitative investment strategy is designed to generate superior returns over the long-term and minimise risk.
Using a high conviction strategy combining rigorous fundamental analysis with a top down macroeconomic assessment of market conditions and outlook, it managed to retrieve over five per cent more in returns than its peers in an approximately two per cent less volatile environment.
The fund has cumulative returns of 15.49 per cent at a volatility of 7.88 per cent, as opposed to the sector average of 8.31 per cent returns at 14.05 per cent volatility.
The chart below illustrates the performance of the Ellerston Fund in comparison to the larger global equities funds exceeding $1 billion in funds under management over three years to last months-end.
Despite a place in the top quartile, Platinum’s $11 billion International C Fund only produced returns of 10.15 per cent with a volatility of 9.61 per cent.
Mosaic’s $1.8 billion Strategic International Fund dropped to the second quartile for performance, with total returns of 9.14 per cent and volatility of 9.36 per cent, while Magellan’s Global Hedged Fund sat in the third quartile with returns of 8.58 per cent at volatility of 9.08 per cent.
IOOF’s $200 million MultiMix International Shares Fund similarly outdid it’s peer group, sitting just under Ellerston for returns and volatility.
AUTHOR
Anastasia Santoreneos
Recommended for you
Janus Henderson is actively seeking to partner with private wealth firms in Australia as it looks to expand its number of strategic partnerships, as well as focus on retirement income product development.
Global investment manager First Sentier Investors has launched an umbrella brand to provide greater clarity around its shift to a multi-affiliate asset manager encompassing six investment teams.
Janus Henderson has seen intermediary outflows in the second quarter of US$1.2 billion, although its deal with insurer Guardian means overall net flows are US$46.7 billion.
Infrastructure assets are well-positioned to hedge against global uncertainty and can enhance the diversification of traditional portfolios with their evergreen characteristics, an investment chief believes.
