Markets

Atchison Consultants weighs up the three-year performance of five top ranked managed funds in the growth subset of the increasingly in-demand alternatives sector.

There is a world of complexity behind the construction of a highly concentrated portfolio of stocks that consistently outperforms the benchmark. According to Bob Desmond it requires patience and a willingness to operate in “a very select universe”.

To provide a value proposition that stands apart, wealth management practices must be adaptive and consider the range of investment products available. Two popular options show how practices can cater to evolving client needs.

In this column we take a closer look at the best performing funds in some of the most popular asset classes, with the aim of providing insight and support for those seeking to build more resilient portfolios. This week, we take a closer look at liquid alternatives.

With interest rates at or near their peak, the headwinds buffeting small caps could turn into tailwinds. According to Australian Ethical portfolio manager Andy Gracie, that might make now an opportune moment to invest in the sector.

A recalibration of dislocated markets is inevitable, according to Atrium’s Glen Foster, and the landing may not be a soft one. This presents an opportunity for investment teams that are prepared for a range of outcomes.

For capital allocators concerned about exposing their clients to too much risk in real estate debt, specialists say asset discernment and due diligence are key to protecting investments in a rapidly growing sector.

The benchmark core equities sector is a fundamental sleeve in any sophisticated portfolio. Most profess top quartile returns, but which five have genuinely outperformed the market over a three year term?

Track record is vital, but a lack of comprehensive and independent research is often forcing investment teams to do their own due diligence when it comes to alternative managers.

“Volatility is the most persistent diversifier,” says Atlantic House Australian head Andrew Lakeman. “People are starting to realise that, as well as realising that diversity of assets in a portfolio – with different names – does not necessarily mean that you are diversified.”

In this head-to-head battle, Atchison Consultants analyst Mishan Dahia pitches Magellan and Clearbridge against each other in an infrastructure performance match up. Which one leads, and which one lags?

As we approach the bottom of the current cycle, fixed income is back to playing its traditional defensive role, says Yarra Capital Management’s Roy Keenan. To get equity-like returns without exposure to defaults, investment-grade credit should do the trick.