Canstar has released its 2022 Managed Fund Star Ratings and Awards results, which can act as a helpful guide for savvy investors who are researching their options. Canstar Research has released the results of the 2022 Managed Funds Awards and Star Ratings. Source: G-Stock Studio/Shutterstock.com. Managed funds pool money from investors, with a fund manager then buying and selling assets, such as shares or bonds, on behalf of the investors. Because the money is pooled, you may have access to more investment opportunities, including asset classes and market sectors, than you may have as an individual.
There is a vast amount of money in managed funds in Australia. According to the Australian Bureau of Statistics (ABS), there was $4,390.3 billion under management during the September 2021 quarter. According to Canstar Research, 2021 was a bumper year for most asset classes, which saw managed fund returns regularly exceed 20–30% when invested in equities, property or more aggressive multi-sector strategies. Note that past performance is not indicative of future performance.
Canstar Research analysed 384 managed funds across 56 providers in our database. Of these, 43 funds received a 5-Star Rating, demonstrating Outstanding Value. Three providers were then identified as Award-winning managed fund providers for their strong overall performance across multiple asset classes and consumer categories.
Here are the award-winning providers for 2022, as well as the individual products that took out the top rating in various asset categories. Below we also explain how the providers and products were assessed and which funds were eligible.
Canstar’s three Managed Fund Provider of the Year Award categories are: Provider of the Year – Managed Funds: Awarded for overall outstanding value across a variety of different asset classes and profiles.
Provider of the Year – Managed Funds (Australian Equities): Awarded for outstanding value within the domestic equities market.
Provider of the Year – Managed Funds (Multi-Sector Funds): Awarded for outstanding value across multiple multi-sector funds.
Colonial First State Investments has taken out the Provider of the Year – Managed Funds Award for the fourth year running.
Canstar Research said Colonial First State Investments continued to offer a wide range of managed funds both in Australia and internationally, with a strong performance relative to other funds in the domestic mid/small cap, global large cap and multi-sector growth profiles.
According to Colonial First State Investments, it offers access to 159 funds and options in its FirstChoice Wholesale Investments product, while its FirstChoice Investments product offers access to 118 funds and options, with a minimum initial investment of $5,000 and regular investment of $100. For the second year running, IOOF has taken out the Provider of the Year, Managed Funds Multi-Sector Funds Award.
Canstar Research said it demonstrated strong performance across the multi-sector profiles with above-market-average investment returns over the past five years.
According to IOOF, it has a dedicated portfolio manager for each asset class with support from external asset consultants. Investors also have the option to reduce the amount of management from the fund in return for lower fees. This is the first time Bennelong has taken out this award, with Canstar Research saying it performed particularly strongly across the past five years.
“While their $10,000 minimum buy-in could be a barrier for some, with returns like this they may be worth a look for those in the market,” Rating Manager Josh Sale said.
Bennelong says it partners with boutiques to manage investments across the globe with $20 billion in assets under management and advice (as at December 2021). It invests across a range of asset classes including equities, infrastructure and real estate, and global emerging markets. 2022 5-Star Rated Managed Funds
Here are the managed fund products that took out an Outstanding Value Award for receiving a 5-Star Rating this year. The Outstanding Value Award-winning products in each profile are sorted alphabetically by provider name. Single asset class funds
These are funds that are largely invested in highly liquid, short-term securities such as bank deposits, cash and bank bills. The overall maturity is expected to be less than one year. Exposures to cash/overnight accounts are also included. Advance Asset Management, Advance Cash Multi-Blend Fund
Mutual Limited, Mutual Cash Term Deposits and Bank Bills Fund
Funds which invest in the same sorts of assets as Australian Cash, such as bank deposits and bank bills, but may also invest in government bonds or corporate debt and asset-backed securities. Advance Asset Management, Advance Australian Fixed Interest Multi-Blend Fund
Janus Henderson Investors (AUS), Janus Henderson Australian Fixed Interest Fund Yarra Investment Management, Yarra Australian Bond Fund Funds invest […]
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