Equity duration: An oxymoron or an important portfolio exposure?

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Duration, despite being a common measure within the fixed income community, is a relatively foreign concept when it comes to equities. However, the latest research from Zenith Investment Partners shows that considering equity duration can be a powerful tool in constructing investment portfolios. Duration is the length of time required for cashflows from an asset […]

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Smaller companies are higher beta, but they need not be

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From time to time, the market reminds us of the inherent volatility of equities as an asset class. The December quarter of 2018 was a clear example of this, with the S&P/ASX 300 Index falling 8.4%; its largest quarterly decline since September 2011. However, the quarter was even tougher for smaller capitalisation stocks, with the […]

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Market Neutral still a diversifier despite a tough 2018, says Zenith

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With Australian equities performing solidly and consistently in recent years, the negative 2018 calendar year served as a sharp reminder that alternative sources of returns can be an important diversifier of a portfolio. However, alternatives in the form of Australian market neutral funds largely turned in a relatively disappointing performance over 2018, with Zenith’s rated […]

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Australian equities: Investors shift towards high conviction as core comes under pressure 

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Investor momentum towards high conviction Australian equity strategies is likely to continue as traditional core strategies come under increasing pressure from low cost quantitative and passive index offerings, according to Zenith’s latest Research Report on the asset class. In the past 12 months the research house has reported 24% growth in the funds under management […]

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How advice practices benefit from early ratings on new funds

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In the past month Zenith has been the first Australian research house to rate three new funds from Airlie Funds Management and Firetrail Investments, and as Zenith’s Head of Equities Quan Nguyen explains, backing selective funds early is all part of a value proposition that can benefit adviser clients and their investors. That’s because like […]

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Zenith Review: Hot Micro Cap demand leads to six-fold increase in capacity in Zenith rated universe

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There has been a sharp rise in investor demand within Australian Micro Caps and a corresponding increase in funds meeting this demand, according to Zenith’s most recent Sector Review. Since 2016, the number of Micro Cap funds in Zenith’s rated universe has increased 125%, while the total funds under management (FUM) in Zenith’s rated Micro Cap […]

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Value found outside “Blue Chips”, says Zenith.

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Zenith has just released its 2016 Australian Large Companies Sector Review, and once again, the managers on Zenith’s Approved Product List (APL) have outperformed the index. Commenting on the review, Quan Nguyen, Senior Investment Analyst and Zenith’s lead analyst on the Australian Shares – Large Companies sector said, “On average, funds on Zenith’s Approved Product […]

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Another strong year for small cap funds – but are the days of double digit excess returns behind us?

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2015 was another strong year for Small cap funds according to Zenith Investment Partners Australian Shares Small Companies Sector Review released last week. Quan Nguyen, Zenith’s lead analyst on the Australian Small Cap sector said ‘over the last 12 months, the active small cap funds on Zenith’s Approved Product List outperformed the S&P/ASX Small Ordinaries […]

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Australian share funds well positioned to capture offshore growth, says Zenith

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Zenith has just released its 2015 Australian Large Companies Sector Review, and once again, the managers on Zenith’s Approved Product List (APL) have performed strongly. Notwithstanding the subdued level of global and domestic growth over the last 12 months, the S&P/ASX 300 Accumulation Index returned 10.2% for the 12 months ending 30 April 2015, and […]

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Active management critical for small cap investing

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A passive large cap strategy has significantly outperformed a passive small cap strategy over the past 17 years according to a detailed analysis undertaken by Zenith Investment Partners in their Australian Small Companies Sector Review released this week. This has occurred on both on an absolute return and risk adjusted basis. However, according to Quan […]

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