Which has been the strongest short-term theme?
Investors are accused of being ‘theme junkies’ as they chase the latest mega-trend but which theme has seen the strongest returns?
Earlier this month, chief investment officer at Montaka Global Investments, Andrew Macken, said investors were chasing trends which were being ‘spruiked’ by asset managers looking to capture the demand for thematic investments.
“It almost feels like investors are looking for a new decade-long theme… every two weeks. Investors have become theme junkies,” he said.
While investors should play out a theme over the long-term, which one had performed best over the past year?
According to FE Analytics, over one year to 31 August, 2021, there was a clear win for those funds which were focused on financials.
The top performer was VanEck Australian Banks ETF which returned 52.9% followed by BetaShares Australian Financials ETF which returned 44.9%.
This was followed by SSgA SPDR S&P/ASX 200 Financials ex A-REITs and BetaShares Global Banks ETF Currency Hedged which returned 44.7% and 44% respectively.
These four funds compared to returns of 30.3% by the specialist sector over the same period within the Australian Core Strategies universe.
Performance of financial funds versus sector over one year to 31 August 2021
At the other end of spectrum, the lowest one-year returns had come from healthcare and biotech vehicles.
CFS Wholesale Global Health & Biotechnology fund returned 19.6%, ETFS S&P Biotech ETF returned 20.1%, BetaShares Global Healthcare ETF Currency Hedged returned 22.6% and Zurich Investments ACI Healthcare Impact returned 25.8%.
Performance of healthcare funds versus sector over one year to 31 August 2021
AUTHOR
Laura Dew
Recommended for you
Outflows have doubled in the property and infrastructure space to $1.3 billion with advisers instead favouring private markets as Morningstar data finds active property funds are struggling to outperform.
Fund manager HMC Capital is seeking to expand fundraising for its private equity vehicle into wholesale platforms now that it has achieved a three-year track record, while scrapping plans for a second fund.
Former Platinum co-founder James Simpson will take up a non-executive role at Income Asset Management as two directors retire.
Bell Financial Group has announced a 44 per cent decline in half-year net profit after tax but record funds under advice as it transitions into a diverse wealth management business.
