logo

Trends + Ratings

Concentration of managers evident in Lonsec’s 2011 Global Long/Short Sector Review

18 Aug 2011
From

Lonsec’s review of the Global Equity Long/Short sector encompassed 15 funds now allocated into two categories – Global (11 funds) and regional Asia (four funds). Of these two global products were awarded ‘Highly Recommended’ – the Five Oceans World Fund and Platinum International Fund. One Asian long/short product received a Highly Recommended rating – the Platinum Asia Fund.

Rui Fernandes, Senior Investment Analyst who led this review commented, “The number of funds reviewed in this sector is a reflection of the limited options available to Australian investors when compared to global long only funds (Lonsec researches 36 of these).”

“When comparing the long/short global and Australian sectors, a clear concentration in the number of underlying investment managers is evident.”

Platinum Asset Management, which dominates this space (by AUM and breadth of product range), is a significant factor in this outcome – Lonsec currently researches six products managed by this firm.

“Another interesting observation from this sector review is the domination of ‘home grown’ investment managers,” said Fernandes.

“Out of the eight underlying investment managers across the Global and Asian sub-sectors, five of these are Australian businesses with most having their investment operations in Sydney.”

“This contrasts with long-only Global and Asian equity funds where multi-city located investment teams are common and solely an Australian presence a rarity.”

Tags:               

Earn CPD Points

  • CPD: A TTR strategy for modern retirement

    We are currently witnessing one of the most significant demographic transformations in Australia’s history. Over the next decade, an estimated 2.5 million Australians are expected to enter retirement[1]. This article, [...]

  • CPD: Trend following in uncertain times

    Trend following strategies aim to generate returns by capturing sustained price movements across a diverse range of asset classes. Unlike traditional investment approaches that rely on valuation or forecasting, trend [...]

  • CPD: Aged care advice and ethics

    Data from the Australian Institute of Health and Welfare (AIHW) shows that Australia’s population aged 65 and over is projected to reach 22% – or 8.8 million people – by [...]

  • CPD: AI governance – a practical framework for advisers

    Regulator scrutiny of AI governance just got serious In years to come, they may well call it the ‘Mythos effect’ – the point in early 2026 where all the concerns [...]

  • CPD: Thinking outside the box – providing a loved one a paycheque for life

    Australia’s great wealth transfer is well underway. An estimated $5.4 trillion is expected to pass from those aged 60 and over to younger generations within the next two decades.[1] In [...]

View more CPD