How have IOOF’s 5 Crown funds performed?
In the latest rebalance of the FE fundinfo Crown Fund Ratings, eight IOOF funds received a 5 Crown rating, mostly coming from its MultiMix and MultiSeries ranges thanks to its strong manager selection.
Along with First Sentier Investors, IOOF had the most funds rated 5 Crowns.
According to FE Analytics, over three years to 31 December, 2020, the MultiMix Growth fund returned 28.35%, Balanced Growth returned 25.61%, Moderate returned 20.38% and Cash Enhanced returned 5.2%.
From the MultiSeries range, MultiSeries 90 returned 26.01%, MultiSeries 70 returned 25.01% and MultiSeries 50 returned 21.52%.
The difference between each MultiSeries fund was the allocation to growth assets, with MultiSeries 90 having a 90% allocation.
And finally, the IOOF Balanced Investor Trust returned 23.94%.
Dan Farmer, IOOF chief investment officer, said a focus on strong manager selection was a key driver of returns, with enhanced manager line-ups leading to increased process and style diversification.
“We’ve continued to look towards more absolute return strategies focused on relative value and more opportunistic investment strategies,” Farmer said.
“Specifically, we have a preference for boutique managers, and we are early adopters of new strategies.
“Boutique managers who have low funds under management, and are earlier in their business lifecycle, tend to be more motivated and evidence shows they do better in their formative years. This is where we believe we are differentiated and has been a strong driver of returns.”
Farmer said the appeal and success of MultiSeries funds was its low cost for a predominately active fund.
“IOOF MultiSeries is low cost but that doesn’t mean we have compromised on investment strategy or returns,” Farmer said.
“Despite being low cost, IOOF MultiSeries is predominantly active and it has high allocations to non-traditional assets which has helped achieve the strong returns.”
The acquisition of the ANZ Wealth investment team in early 2020 enabled the firm to expand its portfolio management function.
“A new dedicated asset allocation capability has supported us with additional insights and continues to play an important role in the development of both our strategic and dynamic asset allocation views,” Farmer said.
Performance of the 5 Crown IOOF funds over three years to 31 December 2020
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