POWERED BY MOMENTUM MEDIA
Mercer revamps multi-manager approach
 |
| Russell Clarke
|
Mercer has implemented a new strategic asset allocation policy for its multi-manager funds this month in the wake of a review process undertaken this year.
The company announced this week that the changes were based on lessons learned during the global financial crisis (GFC) and were designed to give investors better protection against future periods of extreme volatility while continuing to provide competitive returns.
Commenting on the changes, Mercer Investment Management chief investment officer Russell Clarke said the review had been part of a regular process that had been timed to take stock and learn from the events of the GFC.
“One of the key lessons the GFC taught us was that traditional industry asset classifications for multi-asset structures are too limited and overly simplistic,” he said. “Traditional ‘growth’ and ‘defensive’ classifications have increasingly failed to fully capture the intrinsic risk of such structures.”
Clarke said in light of this finding, Mercer’s review had aimed to reduce exposure to equity risk, achieve a more truly diversified portfolio to deliver better risk-adjusted returns and provide fund structures that allowed greater flexibility.
The head of Mercer’s investment management business in Australia and New Zealand, Gary Burke, outlined the fund changes resulting from the review and said the expanded universe included natural resource and infrastructure funds and inflation-linked bond and global credit funds.
AUTHOR
Mike Taylor
Recommended for you
Large superannuation accounts may need to find funds outside their accounts or take the extreme step of selling non-liquid assets under the proposed $3 million super tax legislation, according to new analysis from ANU.
Economists have been left scrambling to recalibrate after the Reserve Bank wrong-footed markets on Tuesday, holding the cash rate steady despite widespread expectations of a cut.
A new Roy Morgan report has found retail super funds had the largest increase in customer satisfaction in the last year, but its record-high rating still lags other super categories.
In a sharp rebuke to market expectations, the Reserve Bank held the cash rate steady at 3.85 per cent on Tuesday, defying near-unanimous forecasts of a cut and signalling a more cautious approach to further easing.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
