Canstar reveals its 2022 Managed Funds Award winners
03 Mar 2022
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.
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 $4,476.6 billion under management during the December 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.
2022 Managed Funds Provider of the Year Awards
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.
Provider of the Year, Managed Funds – Colonial First State Investments
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.
Provider of the Year, Managed Funds Multi-Sector Funds – IOOF
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.
Provider of the Year, Managed Funds Australian Equities – Bennelong Funds Management
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
Australian Cash
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
Australian Fixed Interest
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 Capital Management, Yarra Australian Bond Fund
Australian Property
Funds invest almost exclusively in Australian listed property trusts. This may be either completely in their own right or through property syndicates. At least 75% of the portfolio is invested in listed property, with a smaller component in direct property and/or cash.
- One Managed Investment Funds Limited, Charter Hall Maxim Property Securities Fund
- Pendal Fund Services Limited, Pendal Property Investment
- Pendal Fund Services Limited, Pendal Property Securities
Australian Shares – Large Cap
Funds that invest in domestic stocks which are in the top 70% of the stock market by total value, with varying balances of growth (higher-risk, higher-value) and value (lower-risk, lower-value) stocks.
- Australian Unity Funds, Platypus Australian Equities Fund – Wholesale
- Bennelong Funds Management Limited, Bennelong Australian Equities Fund
- Bennelong Funds Management Limited, Bennelong Concentrated Australian Equities Fund
- Colonial First State Investments Limited, FirstChoice Wholesale Investments –- Ausbil Wholesale Australian Active Equity
- Fidante Partners Limited, Alphinity Sustainable Share Fund
- Macquarie Investment Management, Macquarie Australian Shares Fund
- Prime Value Asset Management, Prime Value Emerging Opportunities Fund
Australian Shares – Mid/Small Cap
These funds invest in domestic stocks in the bottom 30% of the equities market by total value, with varying levels of investment in high-growth and low-growth stocks.
- Ausbil Investment Management, Ausbil Microcap Fund
- Australian Ethical, Australian Ethical Emerging Companies Fund (Wholesale)
- Pendal Fund Services Limited, Pendal MicroCap Opportunities Fund
- Macquarie Investment Management, Macquarie Australian Emerging Companies Fund
Global Fixed Income & Bonds
These are funds invested in foreign government and corporate debt, with terms to maturity generally greater than one year. A small portion may also be invested in cash or cash-like securities to hedge currency risks. At least 25% of the portfolio invested in Australian Bonds is required.
- Macquarie Investment Management, Macquarie Dynamic Bond Fund
- IOOF, IOOF MultiMix Diversified Fixed Interest Trust
Global Shares – Large Cap
Funds investing in global stocks in the top 70% of the equities market by total value. Funds may have varying levels of investment in low-growth and high-growth stocks.
- Antares Capital Partners Limited, Intermede Global Equities Fund
- Capital Group Investment Management, Capital Group New Perspective Fund (AU)
- Colonial First State Investments Limited, Investments FirstChoice Wholesale Investments – T. Rowe Price Wholesale Global Equity
- Equity Trustees Limited, Insync Global Capital Aware Fund
- Equity Trustees Limited, Loftus Peak Global Disruption Fund
- Fidante Partners Limited, Alphinity Global Equity Fund
- FIL Responsible Entity (Australia) Limited, Fidelity Global Demographics Fund
- K2 Asset Management Limited, Apostle Dundas Global Equity Fund Class C
- Hyperion Asset Management Limited – Hyperion Global Growth Companies Fund (Managed Fund)
- Zurich Investment Management Limited (Zurich Investments), Concentrated Global Growth Fund
- Zurich Investments, Global Growth Share Fund
- Zurich Investments, Unhedged Global Growth Share Fund
Multi-sector funds
Multi-Sector Aggressive
Funds that invest in multiple sectors and have more than 80% of their investments exposed to relatively volatile ‘growth sectors’ such as shares and property.
- Australian Ethical, Australian Ethical Diversified Shares Fund (Wholesale)
- Colonial First State Investments Limited, FirstChoice Wholesale Investments – First Sentier Wholesale High Growth Fund
Multi-Sector Balanced
Funds that invest in multiple sectors and have 41%–60% of their investments exposed to growth sectors.
- IOOF, IOOF MultiSeries 70
Multi-Sector Growth
Funds that invest in multiple sectors and have 61%–80% of their investments exposed to growth sectors.
- Ausbil Investment Management, Ausbil Balanced Fund
- Advance Asset Management Limited, Advance Balanced Multi-Blend Fund
- Colonial First State Investments Limited, FirstChoice Wholesale Investments – First Sentier Wholesale Diversified
- Colonial First State Investments Limited, FirstChoice Wholesale Investments – FirstChoice Wholesale Growth
- IOOF, IOOF MultiMix Balanced Growth Trust
Multi-Sector Moderate
Funds that invest in multiple sectors and have 21%–40% of their investments exposed to growth sectors.
- IOOF, IOOF MultiSeries 30
- Colonial First State Investments Limited, FirstChoice Wholesale Investments – First Sentier Wholesale Conservative
How were the managed funds assessed?
Managed funds were analysed based on both their performance and features. The strength and consistency of a fund’s returns over the last five years were among the main factors considered when it came to assessing its overall performance. The features assessed fell into four categories:
- opening your account (e.g. ease of application process and payment options)
- investment flexibility (e.g. investment options and distribution)
- support (e.g. access to a call centre)
- closing your account (e.g. ease of withdrawing funds and what fees apply.)
For the three provider Awards, institutions were assessed based on their top-performing fund across the Managed Funds Star Ratings profiles.
To be eligible for Canstar’s Managed Funds Star Ratings and Awards, each fund had to meet criteria that included:
- being open to new investors
- having an initial minimum investment amount equal to or less than $25,000
- being open to new investors and available directly to the consumer (not via an adviser or platform only)
- not having an entry fee (or deferred entry fee), an initial contribution fee or an establishment fee
- generally having a minimum of five years of performance history available, or an indicative rating
- having minimum funds under management (FUM) of $50 million
- not being a hedge fund or exchange-traded fund (ETF).
You can find out more about the Managed Funds Star Ratings and Awards Methodology.
Cover image source: G-Stock Studio/Shutterstock.com
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This article was reviewed by our Sub Editor Jacqueline Belesky and Sub Editor Tom Letts before it was updated, as part of our fact-checking process.
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