Nick Dignam from Fortitude Investment Partners shares insights with Lachlan Maddock from Fortitude Investment Partners on how a diversified portfolio in mid-market private equity is structured. The Inside Adviser
The world of alternative investments is at a crossroads. As markets defy expectations and liquidity concerns take centre stage, investors find themselves forced to rethink how they deploy capital in an increasingly complex environment.
DNR Capital continues stellar run with third consecutive domestic equities win
Brisbane-based DNR Capital has long been known to advisers as a managed account investment product provider, with the group’s Australian equities suite of options a common feature in client portfolios for over a decade.
That presence was highlighted Thursday night when DNR Capital was recognised at the leading Australian Equities manager at the 2024 IMAP Managed Account Awards in Sydney. It is the third consecutive year the DNR team has received the award.
The continued run of success is no mean feat for DNR given the rise of managed accounts in recent years and the proliferation of providers joining the managed account space, with the Australian equities sector an increasingly competitive portfolio sleeve to fill.
The group has actually been in operation for 21 years, but it is in the last decade or so that DNR became one of the more popular providers, with its separately managed account options gaining traction as the managed account universe expanded. For many advice groups catering to retiree clients, especially, getting them to switch from direct equities on a standard wrap platform to a centrally managed model portfolio could be a tough sell, but it became more palatable if advisers could also offer those clients a separate portfolio of managed Australian equity holdings.
Like any investment product, however, the success of DNR’s flagship Australian Equities fund has always been dependent upon its performance. Its flagship Australian Equities High Conviction Fund, run by Jamie Nicol and Scott Bender, holds 15 to 30 stocks and takes a high conviction approach with a sub-20 per cent cash holding. Since inception in 2015, it has a net active return of 9.98 per cent (1.49 per cent above the benchmark S&P/ASX 200 Total Return Index).
Speaking to The Inside Adviser, DNR chief executive Robert White attributed the group’s record to a singular focus on domestic equities.
“We have a strong track record in SMAs as one of the first exponents in the Australian market coupled with length of time, pedigree across managed accounts more broadly and a clear focus a dedication to the sector,” White said, noting that “pure active investment management” has always been the group’s driver.
“Evolution of this sector will be supported and driven by an ongoing desire for high quality, active investment managers combined with the efficiency and transparency provided by the managed account structure.”
