Managed funds bounce back
Christine St Anne  |  25/01/2013Text size  Decrease  Increase  |  

Christine St Anne: Morningstar's latest managed funds survey found that fund managers ended 2012 with some healthy returns. To give us an insight into how well these funds performed, I'm joined by Morningstar's Julian Robertson. Julian, welcome.

Julian Robertson: Thank you.

St Anne: Julian, what managed funds did well in the last quarter of 2012?

Robertson: Well, it was fairly broad brush success for a lot of managed futures and the market was pretty strong so they all (wrote the coattails) of the increase in share markets around the world and domestically. One that probably sticks out the most is the value type managers. And the sectors that did particularly well were things like financials and consumer discretionary and that's a typical hunting ground for the value type managers, and that was common to both Australia and overseas or global investment managers too.

St Anne: Was the good performance a reflection of manager skill or the conditions of the market?

Robertson: Well, it's a combination of both, I guess. A lot of the managers, obviously, are positioned for the uptick in the economy in the market and those managers who added more sensitive buyers to their portfolios tended to do better and that's reflected in the outcome of the value managers, for example. So, it depends on their style and where they were positioned, with a bit of stock selection and a bit of fair wind from the market too.

St Anne: Julian, were there any funds or sectors that lagged?

Robertson: Well, one of the main areas where there was a marginal underperformance was actually in AREITs (Australian real estate investment trusts), it was only very small, but that's obviously after a very strong rise in that particular sector of the market. So, you could say they had a slightly disappointing quarter but they still delivered round about 7 per cent, and it's a notoriously difficult market to outperform any way because of the narrowness of the stocks within the universe.

St Anne: Julian, given the broad range of managers that did well, could we see a return of the market in 2013?

Robertson: Well, it's a difficult question because you are sort of looking at the future here. But certainly there is a few commentators who are of the opinion that the back drops got a lot better, and a few things have been resolved or there is a little less uncertainty regarding the fiscal cliff, for example, in the U.S. and the Chinese data has been little stronger or a little bit more upbeat. But then a lot of that's reflected already in the market with the recent rise. So, there is sort of concern about the valuations of the market at the moment and so net-net it might be difficult for the market to shoot ahead from here, but as always it's always with hindsight that these things are much easier to foretell.

St Anne: Julian, thanks so much for your insights today.

Robertson: Thanks very much, Christine.

Video Archive...

Keeping a long-term focus
12/10/2015  Superannuation balances still grew despite extreme events such as the global financial crisis, says Morningstar’s Anthony Serhan.
The problem with China
07/10/2015  China’s stock market crash will spur an internal debate in the country about the need for more market-based reforms, says author and former banker Satyajit Das.
Best ideas in credit
06/10/2015  Morningstar’s John Likos discusses what types of securities are included in the Moat-Focused Credit Best Ideas list.
Pitfalls of investing for retirement
30/09/2015  Bad behaviour before and in retirement can take a major hit to your savings. We outline the pitfalls to avoid if you want to maximise your pension pot.
Outlook for rates and the dollar
28/09/2015  Nikko Asset Management currency strategist Roger Bridges gives his view on China's recent move with the yuan, as well as the outlook for interest rates and the Australian dollar.
The new mediocre and growth
25/09/2015  Housing affordability challenges and shorter government terms will be the norm under the "new mediocre" of growth, says author Satyajit Das.
A look at global valuations
22/09/2015  Magellan’s Hamish Douglass talks about where he is finding value across the globe and why his fund has reduced its exposure to emerging markets
Global economic worries stall Fed
18/09/2015  Although overseas concerns halted Fed action this month, a hike is still in the cards this year--but it shouldn't derail the economy, say Morningstar's Bob Johnson.
M&A outlook for energy and resources
16/09/2015  Further acquisitions are expected following Woodside’s bid for Oil Search as the sectors face weak commodity prices, says Morningstar’s Mark Taylor.
Seeking value in turbulent markets
09/09/2015  Quality stocks will continue to focus on their growth strategies despite the market swings.
4 retiree to-dos in a turbulent market
02/09/2015  Despite the market swings, retirees can control stuff like checking cash reserves and spending levels.
Where to shop for quality stocks
31/08/2015  Morningstar's Peter Warnes gives his take on the recently concluded earnings season and gives investors some advice for coping with the recent volatility.
What now for China-exposed ETFs?
27/08/2015  Morningstar’s Alex Prineas discusses the growth of the ETF market and what the China market turmoil means for the A-Share ETFs.
Market overreacting to China news
26/08/2015  The depth of the market sell-off isn’t justified by the data out of China, says Morningstar’s Francisco Torralba
What to make of the market mayhem
25/08/2015  As the market focuses on China and the Fed, investors should keep an eye on the long term.
QBE emerges from rough patch
19/08/2015  As the fiscal 2015 earnings season rolls on, Morningstar's Peter Warnes gives investors his view on results from QBE, ANZ and Newcrest, while also sharing his thoughts on the Asciano takeover.
Telstra makes a statement
14/08/2015  Morningstar's Peter Warnes gives investors his take on the full-year results from the likes of Cochlear, CSL, the Commonwealth Bank and Telstra.
Introducing Morningstar's new fund screener
13/08/2015  Quality fund managers across a range of asset classes can now be easily selected using Morningstar's new fund screener.
What are the priorities for retail shareholders?
11/08/2015  The Australian Shareholders’ Association will be keeping a close watch on the current reporting season to ensure companies are balancing growth with regular dividend payments.
Introducing Morningstar's new stock screener
04/08/2015  Morningstar's new stock screener allows exclusive access to our analyst ratings, including recommendation, economic moat, stewardship and fair value uncertainty ratings.