Best Aus­tralian Share Funds

In­vestors are spoilt for choice when look­ing for a strong per­former

Money Magazine Australia - - CONTENTS -

There is al­ways a big list of win­ners and placeget­ters in the Aus­tralian share funds cat­e­gory, giv­ing in­vestors an ar­ray of top funds from which to choose.

Green­cape Broad­cap, a joint win­ner last year, has done it again this year. “Green­cape's thor­ough fun­da­men­tal process results in a growth-lean­ing port­fo­lio par­tic­u­larly notable for its struc­tural in­clu­sion of small­cap stocks,” says Morn­ingstar an­a­lyst An­drew Miles in a Septem­ber 2018 re­port. “Typ­i­cally small-cap stocks make up 6% to 9% of the port­fo­lio ver­sus about 3% to 5% for the av­er­age Aus­tralian eq­ui­ties man­ager cov­ered by Morn­ingstar.

“Green­cape Broad­cap con­tin­ues to reign supreme in its sec­tor be­cause of an out­stand­ing in­vest­ment team and thought­ful ap­proach,” says Miles. “Port­fo­lio man­ager Matthew Ry­land is an ex­cel­lent in­vestor and has man­aged this strat­egy ex­pertly since in­cep­tion [in 2006]. Ry­land works closely with tal­ented co-founder David Pace and three high-cal­i­bre an­a­lysts.”

Miles says Green­cape's shrewd team, dili­gent re­search and nim­ble size “give us con­fi­dence they'll stay ahead of the chas­ing pack”. But he adds that “one small blem­ish” is the cost, which is higher than av­er­age.

The Lazard Se­lect Aus­tralian Eq­uity W Cl fund is joint win­ner. This fund has “a high-con­vic­tion, bench­mark-un­aware and con­cen­trated port­fo­lio of 12 to 30 stocks, mostly liq­uid large caps with a smat­ter­ing of names out­side the top 100,” says Morn­ingstar an­a­lyst Alexan­der Prineas in an Oc­to­ber 2018 re­port.

Sec­tor al­lo­ca­tions are com­bined into Lazard's four eco­nomic themes: short cy­cle; long cy­cle; in­ter­est-rate sen­si­tive; and con­sumer-re­lated.

“Lazard Se­lect Aus­tralian Eq­uity's con­cen­trated value port­fo­lio can be volatile but for long-term in­vestors it's a com­mend­able strat­egy,” says Prineas. “A dis­ci­plined team and process make this a stand­out for in­vestors with a long time hori­zon.”

Once again the only blem­ish is the an­nual fee, 1.15% but there's no per­for­mance fee.

The funds were se­lected from those high­est rated by re­search houses Morn­ingstar (ex­clud­ing mort­gage funds), Zenith In­vest­ment Part­ners and Lon­sec. For the Mort­gage Fund and Prop­erty Se­cu­ri­ties awards SQM Re­search joined the panel. To qual­ify, each fund had to be open to new in­vest­ment with a min­i­mum ini­tial in­vest­ment of $25,000 or less. Funds were ranked us­ing a points sys­tem based on their rat­ing by each re­search house. A fur­ther fil­ter­ing process was then ap­plied. Per­for­mance data is as at Septem­ber 30, 2018. No win­ning fund or placeget­ter charges an en­try fee.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.