Outright stock selection has been playing a greater than normal role in the performance of Australian fund managers according to the latest Sector Funds Performance Survey conducted by asset consultant,InTech Financial Services.
The InTech survey says that Australian fund managers generally rewarded investors with good returns in calendar 2003 and that while Australian shares represented the best-performing sector in both absolute and relative terms, factors other than ‘growth’ and ‘value’ biases played a greater role in relative returns amongst fund mangers than in previous years.
InTech portfolio manager, Chris Thompson says that in these circumstances there has been a need to look at other factors such as market capitalisation bias to determine the source of success for managers.
“The Mid-Cap Index and Small Ordinaries Index significantly outstripped the 50 leaders,” he says.
Thompson says another distinguishing feature of portfolios was bias to companies with offshore exposure, particularly those issuing profit warnings.
“This lack of a dominant style has meant that outright stock selection has had a greater impact on managed returns,” he says.
Looking at the performance of fund managers with respect to Australian shares in December, 2003, the InTech survey says the top performers over the month were Independent (5.3 per cent),PM Capital(5.1 per cent) and JFCP (4.9 per cent). However over the year, PM Capital (27.2 percent) remains in the top three followed byPortfolio PartnersElite (26.9 per cent) and JM (26.7 per cent).
Where international shares were concerned, the top performance over the month were Acadian (4.2 per cent), Templeton (3.3 per cent) andJP Morgan(3.3 per cent). Over the year,Marathonleads with 9.5 per cent) followed by Acadian (8.3 per cent) and Bernstein (7.2 per cent).
