Where are investors seeing the best opportunities?
Money Management, using FE Analytics, has looked at the funds launched in the last three years and their performance to determine where investors are looking and whether it’s paid off in returns.
Of the 360 funds added to the Australian Core Strategies Universe in the last three years, 68 of them have launched in the global equities sector, which suggests almost 20 per cent of investors are looking outside of Australia for opportunities in the equities market.
Twenty funds launched in the global bonds sector and just three funds launched in the global small/mid cap sectors.
This compares to the 22 funds that have launched in the Australian equities sector, the 20 funds that have launched in the Australian small/mid cap sector and the nine funds that launched in the Australian bonds sector.
Only 12 new funds launched in Asian equities, both the Asia Pacific ex Japan sector and the Asia Pacific Single Country sector, one in North American equities and three in European equities.
Six funds launched in the emerging markets sector, echoing talks of trade tensions, dominated primarily by Colonial First State who launched three new funds, two of which launched this year.
The alternatives sector proved popular, with 34 funds launching in the last three years, eight in the specialist sector and five in infrastructure equities.
Fixed interest was a popular asset class as well, with 44 new funds launching, and almost 60 per cent of those in global bonds.
The absolute return sector also seemed to pick up, with 18 funds launching in the sector, seven of which launched in the year.
The top performing newcomer was Saville Capital Emerging Companies Ord, which launched in the Asia Pacific ex Japan sector and returned 64.12 per cent for the year to 30 July 2018.
Perennial’s Value MicroCap Opportunities Trust was next with returns of 61.27 per cent, and was one of five Australian small/mid cap equity funds sitting in the top ten funds for the year to 30 July.
Others were the Ophir High Conviction fund, the Eley Griffiths Group Emerging Companies fund, the Flinders Emerging Companies A Institutional Fund and the Macquarie Australian Emerging Companies fund.
Only one global equity fund sat in the top ten, AMP Capital’s Global Equity fund, with 39.73 per cent returns, suggesting that while investors are seeking opportunity elsewhere, it might not have proven fruitful just yet.
Only one exchange-traded-fund sat in the top ten, and three in the top 20, pointing to a growing trend towards active management.
The table below shows the top 20 funds launched in the last three years, which sector they belong to and their performance across the year to 30 July 2018.
|
Name |
Sector |
Performance 30 July 2017 – 30 July 2018 (%) |
|
Saville Capital Emerging Companies Ord ATR in AU |
ACS Equity - Asia Pacific ex Japan |
64.12 |
|
Perennial Value Microcap Opportunities Trust ATR in AU |
ACS Equity - Australia Small/Mid Ca |
61.27 |
|
Lakehouse Small Companies ATR in AU |
ACS Equity - Asia Pacific ex Japan |
42.84 |
|
AMP Capital Global Equities ATR in AU |
ACS Equity - Global |
39.73 |
|
Ophir High Conviction A ATR in AU |
ACS Equity - Australia Small/Mid Ca |
36.47 |
|
ETFS Morningstar Global Technology ETF ATR in AU |
ACS Equity - Specialist |
35.63 |
|
Eley Griffiths Group Emerging Companies in AU |
ACS Equity - Australia Small/Mid Ca |
34.26 |
|
BlackRock Concentrated Total Return Share E1 ATR in AU |
ACS Equity - Australia |
33.83 |
|
Flinders Emerging Companies A Institutional ATR in AU |
ACS Equity - Australia Small/Mid Ca |
33.4 |
|
Macquarie Australian Emerging Companies ATR in AU |
ACS Equity - Australia Small/Mid Ca |
32.27 |
|
BetaShares Global Cybersecurity ETF ATR in AU |
ACS Equity - Specialist |
32.22 |
|
CC Marsico Global Retail ATR in AU |
ACS Equity - Global |
31.78 |
|
Lennox Australian Small Companies ATR in AU |
ACS Equity - Australia Small/Mid Ca |
31.43 |
|
AtlasTrend Big Data Big ATR in AU |
ACS Equity - Global |
30.1 |
|
BetaShares Geared U S Equity Currency Hedged ATR in AU |
ACS Equity - North America |
28.68 |
|
Solaris Australian Equity Long Short ATR in AU |
ACS Absolute Return |
27.88 |
|
Chester High Conviction ATR in AU |
ACS Equity - Australia |
27.47 |
|
Zurich Investments Concentrated Global Growth ATR in AU |
ACS Equity - Global |
26.23 |
|
BetaShares Global Energy Companies ETF Currency Hedged ATR in AU |
ACS Commodity & Energy |
25.78 |
|
BlackRock Concentrated Industrial Share D ATR in AU |
ACS Equity - Specialist |
25.74 |
Recommended for you
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.
Three solutions providers – Betashares, Franklin Templeton and Russell Investments – have all launched new ETF products, including one range which uses gearing to help build wealth.
Platinum Asset Management chief executive, Jeff Peters, has shared a progress update on its newly announced turnaround strategy.
There is a role for advisers using inflation-linked bonds in portfolios, according to AXA IM, as the possibility of higher inflation necessitating another US rate hike is not out of consideration.
