ClearBridge Select Opportunities Fund earns ‘highly recommended’ rating from Zenith
Reece Birtles
The ClearBridge Select Opportunities Fund – Class A has been awarded a highly recommended rating by Zenith Investment Partners, an upgrade from the recommended rating the fund has held over the past five years.
The fund, managed by ClearBridge Investments’ Australian Equities team, applies a high-conviction, actively managed investment approach focused on uncovering mispriced opportunities across ASX-listed equities.
Zenith says its “conviction in the fund has strengthened following the enhancement to its fee structure, which it expects to lead to improved investment outcomes” and that it holds “the fund’s portfolio manager and long-standing investment process in high regard.”
Pleasingly, the fund has achieved its investment objective over the most recent five-year period to 30 June, outperforming the benchmark (S&P/ASX Accumulation Index) and median manager over this time frame.
The fund returned 16.91 per cent over one year, 9.42 per cent per annum over five years and 10.40 per cent per annum over ten years, compared with the benchmark’s 6.11, 7.76 and 9.45 per cent, respectively. It ranked in the first quartile of its sector over one, two, three and five years.
Felicity Walsh, Managing Director of Franklin Templeton Australia, says the upgrade reflects the strength of the investment team behind the fund.
“This rating is recognition of the discipline and consistency that Reece and the team have brought to this strategy over a long period. We removed the performance fee on this fund last year to better align outcomes for investors, and it is pleasing to see that change recognised by Zenith alongside the fund’s investment performance,” she adds.
“The rating reflects a fundamentally driven research process that has remained consistent. We look for the most compelling undervalued stock ideas on a forward-looking basis, and we let that valuation bias play out through the cycle,” notes Reece Birtles, head of Australian Equities at ClearBridge Investments.
The team of 14 is based in Melbourne and led by Birtles, who has 33 years of industry experience and has been with the team for 31 years. The Australian Equities team is one of the most stable in the industry, with deep experience and long tenure across the investment group.
Zenith’s assessment of the team also points to the culture behind the investment process, noting that the broader investment team is “collegiate and promotes rigorous debate amongst team members” and that the investment team is “experienced and adequately resourced” to successfully manage the fund.
Overall, Zenith views the portfolio construction process favourably and says it is “encouraged by its strong connection with the stock research performed by the analysts.”
The fund also holds a Recommended rating from Lonsec.
