AFI managers challenged by COVID-19 but opportunities for outperformance remain

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The Australian Fixed Interest sector was not immune from the effects of the COVID-19 crisis with the median manager in Zenith Investment Partners’ Australian Fixed Interest (AFI) category producing a net return of 5.46%, for the 12 months to 30 April 2020 trailing  the Bloomberg AusBond Composite Index (0+ Years) by 0.96% According to Zenith’s

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A growing trend to add Real Assets to a Fund’s targeted asset mix

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Amidst an investment environment where asset class returns are forecast to be lower with greater volatility, Zenith Investment Partners has observed a greater willingness of Multi-Asset managers to incorporate non-traditional asset classes within their strategic asset allocation. In the past, this has included unlisted assets such as private equity and debt. However more recently, Managers

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Why leave the best fixed income opportunities on the table when rates are so low, asks portfolio manager

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Australian investors are leaving “a lot of opportunities on the table” by restricting themselves to domestic fixed income securities when they can least afford to, says Jarod Dawson, Portfolio Manager of the PM Capital Enhanced Yield Fund (EYF). Mr Dawson said: “With official interest rates at a record low of 0.75% in Australia, investors more

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AFI bond managers strongly positioned to navigate unchartered territory

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In an environment where macroeconomic and geopolitical uncertainties have weighed heavily on investor sentiment, Australian Fixed Interest (AFI) bond managers have continued to demonstrate their resilience and produce strong risk-adjusted returns. For the 12 months to 30 April 2019, the median manager in Zenith’s AFI bonds sub-sector produced a net return of 7.2%, broadly keeping

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Real return funds go defensive and reduce equities exposure

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Real return funds that can flex their asset allocations to suit market conditions have significantly reduced their equities exposure, according to Zenith. Among Zenith’s rated universe of real return funds, the average allocation to Australian equities has progressively declined from 13.6% in December 2016 to 4.5% as at June 2018. By comparison, the Australian equities

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Low cost multi-asset funds more volatile in down markets

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Investors in low cost multi-asset funds are more likely to experience higher volatility when markets decline, according to new research by Zenith. In its 2018 Multi Asset Diversified Review of 88 rated funds, Zenith compared the performance and drawdown of a low cost group in the growth category with a management fee below 0.58% per

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Zenith appoints third research analyst from financial planning firm

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Zenith has recruited a third research analyst from the financial planning industry with the appointment of James Damicoucas as Associate Investment Analyst. James will undertake fund manager research as part of Zenith’s income team, reporting to Andrew Yap, Head of Multi-Asset and Australian Fixed Income. James joins Zenith after two and a half years as

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Multi-asset managers further reducing investment expectations, says Zenith

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With cash rates globally at, or near, historic lows, investment managers are reducing their return expectations across a broad range of asset classes, says Zenith Investment Partners in their latest Multi Asset Sector review released last week. Zenith’s Head of Income and Multi-Asset Research, Andrew Yap said “participants within Zenith’s sector review have highlighted that

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Central bank intervention poses challenges for global fixed income funds says Zenith

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Global Fixed Income managers have been challenged to navigate an ever volatile investment landscape due to divergent central bank policy and dislocations in global high yield, according to Andrew Yap, Zenith Investment Partners Head of Multi-Asset & Income Research on the Global Fixed Income Sector Review that was released last week. Commenting further, Andrew Yap

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Zenith releases 2015 Multi Asset Sector review – challenging market conditions spurs innovation

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Zenith has released the 2015 Multi Asset Sector review and the most noticeable message was that the sector participants have forewarned of more challenging market conditions ahead, with headwinds brought by a lower set of return expectations across a range of asset classes. In turn, many rated managers have suggested it will become increasingly difficult

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