Zenith review tips active over passive
Zenith Investment Partners has completed its 2011 International Shares Sector Review, finding Zurich Investments, Goldman Sachs and Aberdeen Asset Management to be among the top performers.
Out of 180 products reviewed, 12 funds by eight managers received a ‘highly recommended’ rating, while a further 39 funds received a ‘recommended’ rating.
Other managers to receive the top rating include Magellan Financial Group, Premium China Funds Management, Platinum Asset Management and the Macquarie Professional Series’ IFP Global Franchise Fund and Walter Scott Equity Fund.
Key changes to the recommended product list include the addition of seven new funds across various categories, as well as two upgrades and five downgrades for existing funds.
Senior investment analyst Steven Tang said the review also addressed the ‘activeness’ of incumbent international share managers.
“Zenith believes that the international share sector affords the greatest scope for active management, relative to all other sectors, given the size and breadth of the investment universe,” Tang said.
“It offers the best opportunity for truly active managers to outperform a passive benchmark, assuming, of course, they have skill,” he added.
Zenith applied a range of metrics to analyse activeness of funds in a sector, including simple stock numbers, tracking error and sector concentration.
It found the top five active funds examined were the IFP Global Franchise Fund, Magellan Global Fund, Generation Wholesale Global Sustainability Fund, Platinum Unhedged Fund and Blackrock High Conviction Fund.
Tang said that while the level of activeness does not provide a guarantee of manager skill, Zenith is reassured that the most active managers have the necessary skills to outperform a passive benchmark.
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