With the increasing importance of responsible investment (RI) considerations in investment decisions, it’s no surprise that this has filtered through to the managed accounts space. In the last six months, we’ve seen a sizeable uptick in adviser interest in RI portfolios that either filter out particular businesses with a negative impact on our community, the environment or society more broadly, or have a specific investment objective driven by RI principles.
Our RI portfolios use managers which we view as having a strong commitment to RI principles and are designed to reduce exposure to a range of harmful industries, while focusing on selecting funds which demonstrate a robust approach to assessing and incorporating RI factors. Where possible, these portfolios invest in managed funds or investment vehicles which have a Zenith Responsible Investment classification of either ‘Integrated’, ‘Thematic’ or ‘Impact’.
We’re fortunate to have Head of Responsible Investment & Sustainability, Dugald Higgins, leading our conversations with advisers on RI more broadly, so if you’d like to better understand this rapidly changing space and what that means for RI portfolios, please get in touch with our team.
New monthly markets podcast
To help keep our clients up to date with rapidly changing markets and the impact on investment portfolios, we recently launched a monthly podcast, Let’s Talk Markets, where our highly experienced markets and portfolio management experts share their insights in a short and timely update. Episode 2 is all about bonds - their role in portfolios, how they impact other asset classes, and why investors should consider bonds in the current market environment. I strongly encourage you listen in to this edition.
Zenith Fund Awards
At the core of the Zenith business is our expertise and experience delivering market-leading fund research to Australian financial advisers, and the Zenith Fund Awards is a key event on our calendar each year. It’s a great opportunity for us to celebrate all the hard work and success of the funds management industry and highlight excellence in a broad range of asset classes.
Our congratulations go to all 23 winners but in particular to:
- Fund Manager of the Year, Perpetual Asset Management Australia, who won this award for the third year running. Perpetual was a finalist in five award categories and won in three categories
- Fidante Partners for Distributor of the Year for the fourth consecutive year – a true acknowledgement of the quality of their offering, support to advisers and strength of their stable of boutiques, and
- our Industry Contribution Award winner, funds management veteran Anton Tagliaferro, for his enormous contribution to the financial services industry over four decades as one of the country’s most highly respected value-style fund managers.
With just over 20 years’ experience reviewing fund managers and acknowledging those at the pinnacle of their asset class over the past 11 years of the Fund Awards, we’ve learnt a thing or two about the common themes that define a leading fund manager.
- Quality people will deliver quality results over time – it’s a simple philosophy but an accurate one in this industry.
- Culture is king - a common theme across all successful businesses and in a funds management business too. If a manager has an open, engaged and collaborative culture in addition to quality people, they have a strong foundation for success.
- Those managers who stand-out in each category of the awards have always remained true to label, despite market swings or shifting sentiment that might test their conviction to the team’s investment beliefs.
- A connection with the end investor and understanding their needs is paramount. Being co-invested or having ‘skin in the game’ aligns fund manager interests with those of the end investor, which generally delivers a stronger outcome to clients.
Perhaps there are no surprises in this list, but in an evolving industry, I believe these are important reminders worth sharing.
Zenith Essentials managed accounts available on Macquarie Wrap
We recently expanded the availability of our managed account range with the launch of the Essentials portfolios on Macquarie Wrap. The Essentials range is designed for the more cost-conscious investor and leverages our strong internal capabilities in asset allocation, strategy selection and manager selection. The portfolios invest in a combination of active managed funds in addition to lower cost options such as index funds. Three risk profiles are now available on Macquarie Wrap including moderate, balanced and growth portfolios.
More information about our Essentials range is available here.
Look forward to seeing you at the FAAA Congress
If you’re heading over to Adelaide for the FAAA Annual Congress next month, please drop by and say hi to our team in the exhibition hall. The agenda is shaping up to be a really interesting one this year and as it’s the first annual congress as a combined FPA/AFA entity, it will be a great professional development and networking event for financial advisers.
Kind regards,
David Wright
Chief Executive Officer
