Outstanding value managed funds revealed for 2018

After researching and rating 212 managed fund products, Canstar has revealed the 5-Star recipients for Outstanding Value in its Managed Fund Star Ratings for 2018..

Canstar’s Managed Fund Star Ratings are calculated using a sophisticated and unique ratings methodology that compares price, features and performance across managed fund products. Canstar’s Star Ratings present a shortlist of products, enabling consumers to narrow their search to products that have been assessed and ranked.

After crunching the numbers, Canstar has announced 23 managed fund products (across ten fund managers) received a 5-Star rating for Outstanding Value in its 2018 Managed Funds Star Ratings. These 5-Star winners sit across the following 10 fund profiles.

Australian Cash & Fixed Interest

Australian Cash & Fixed Interest funds invest mostly in securities with a high level of liquidity like bank deposits and bank bills, and in bonds issued by governments and Australian companies.

5-Star Rated Managed Funds in 2018: Australian Cash & Fixed Interest profile
Company Name Product Name
Advance Asset Management Limited Advance Cash Multi-Blend Fund
Mutual Limited Mutual Cash (MCTDF)

Australian Shares – Large Cap

Managed funds in this profile invest in stocks in the top 70% of the capitalisation of the Australian equities market.

5-Star Rated Managed Funds in 2018: Australian Shares – Large Cap profile
Company Name Product Name
Colonial First State Investments Limited FirstChoice Wholesale Investments – Colonial First State Wholesale Index Australian Share
Colonial First State Investments Limited FirstChoice Wholesale Investments – Realindex RAFI Wholesale Australian Share
Antares Capital Partners Ltd Antares Dividend Builder

Australian Shares – Mid/Small Cap

Managed funds in this profile invest in stocks in the bottom 30% of the capitalisation of the Australian equities market.

5-Star Rated Managed Funds in 2018: Australian – Mid/Small Cap profile
Company Name Product Name
Allan Gray Australia Pty Ltd Allan Gray Australia Equity Fund – Class A
Macquarie Investment Management Aus Ltd. Macquarie Australian Small Companies Fund
UBS Asset Management (Australia) Ltd UBS Australian Small Companies Fund

Equity Australia Real Estate

These funds invest at least 75% in Australian listed property trusts, with a smaller component in direct property and/or cash.

5-Star Rated Managed Funds in 2018: Equity Australia Real Estate profile
Company Name Product Name
Colonial First State Investments Limited FirstChoice Wholesale Investments – Colonial First State Wholesale Index Property Securities
Vanguard Investments Australia Ltd Vanguard Index Australian Property Securities Fund

Global – Fixed Income & Bond

These funds invest in government and corporate debt from around the world that typically has more than one year until maturity.

5-Star Rated Managed Funds in 2018: Global – Fixed Income & Bond profile
Company Name Product Name
PIMCO Australia Management Limited PIMCO Global Bond Fund – Wholesale Class
PIMCO Australia Management Limited PIMCO Diversified Fixed Interest Fund – Wholesale Class

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Global Shares – Large Cap

These funds invest mostly in large companies listed around the globe in the top 70% of the capitalisation of the equities market.

5-Star Rated Managed Funds in 2018: Global Shares – Large Cap profile
Company Name Product Name
Morningstar Inv Management Australia Ltd Morningstar International Shares (Unhedged) Fund
Colonial First State Investments Limited FirstChoice Wholesale Investments – Colonial First State Wholesale Index Global Share
Macquarie Investment Management Aus Ltd. Analytic Global Managed Volatility Fund

Multi-sector funds

Multi-sector funds invest in a variety of assets, but with specific proportions in growth assets, such as equity and property. Canstar rated multi-sector funds across four profiles based on growth asset allocation.

Multisector Aggressive: over 80% growth asset allocation

5-Star Rated Managed Funds in 2018: Multisector Aggressive profile
Company Name Product Name
Advance Asset Management Limited Advance High Growth Multi-Blend Fund
Advance Asset Management Limited Advance Growth Multi-Blend Fund

 Multisector Growth: 61% – 80% growth asset allocation

5-Star Rated Managed Funds in 2018: Multisector Growth profile
Company Name Product Name
Colonial First State Investments Limited FirstChoice Wholesale Investments – FirstChoice Wholesale Multi-Index Balanced
Advance Asset Management Limited Advance Balanced Multi-Blend Fund

Multisector Balanced: 41% – 60% growth asset allocation

5-Star Rated Managed Funds in 2018: Multisector Balanced profile
Company Name Product Name
Colonial First State Investments Limited FirstChoice Wholesale Investments – FirstChoice Wholesale Multi-Index Diversified
UBS Asset Management (Australia) Ltd UBS Tactical Beta Fund – Balanced

Multisector Moderate: 21%-40% growth asset allocation

5-Star Rated Managed Funds in 2018: Multisector Moderate profile
Company Name Product Name
Allan Gray Australia Pty Ltd Allan Gray Australia Stable Fund
UBS Asset Management (Australia) Ltd UBS Tactical Beta Fund – Conservative

How are Canstar Managed Fund Star Ratings calculated?

In rating managed funds, the Canstar Research team awarded points for comparative pricing, the array of positive features attached to the product and performance. Points were aggregated to achieve a price score, feature score and performance score.

To be eligible for the Canstar Managed Fund Star Ratings, a fund had to meet certain criteria, including:

  • Having an initial required investment amount equal to or less than $20,000.
  • Being available directly to the consumer, or via direct application
  • Not having an entry fee (or deferred entry fee), initial contribution fee or establishment fee.
  • Having a minimum of five years of performance history available at time of data handover. However, where a fund has been available for less than five years, an indicative rating will be provided for funds that have been available for a minimum of three years. In these instances, funds are compared against their peers for the period over which they have been available.
  • Being open to new investors.
  • Having minimum funds under management (FUM) of $50m.
  • Not being a hedge fund or an ETF.
  • Not being available only via a platform.

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