Stars amongst most consistent fund managers named

Experience and time in the market have come to fore in the 2023 Financial Newswire/SQM Research Star Managers assessment identifying the most consistent performers amongst Australia’s fund managers.

The Star Manager ratings are based on an assessment of the fund managers’ long-term performance and this year saw 10 funds and 14 portfolio managers named as Star Managers.

The 10 funds deemed to be run by “Star Managers” are:

Dimensional Global Value Trust

Dimensional Australian Value Trust

Pendal Concentrated Global Share

Microequities High Income Value Microcap

UBS Australian Share Fund

Yarra Australian Equities Fund

Perpetual ESG Australian Share

Perennial Value Shares Wholesale Trust

Paradice Australian Equities Fund

Ausbil Australian Active Equity

The funds were deemed “Star Managers” because of the consistency of their investment performance over the past three years and, as was the case in 2022, it was time in the market and depth of experience which seemed to matter most.

In the case of Dimensional Robert Ness and Bhanu P. Singh could take a bow for having two funds recognised in the process, while Yarra Capital Management stalwarts Marcus Ryan and Dion Hershan could take a bow with respect to the UBS Australian Share Fund and the Yarra Australian Equities Fund.

Equally, Ausbil’s veteran leader, Paul Xiradis has been recognised for the Ausbil Australian Equity Fund, while in terms of a more recently formed fund, Nathan Hughes has gained recognition for the Perpetual ESG Australian Share Fund.

Therefore, if one thing distinguished the Top 10 it was both leadership and the depth and stability of the investment teams in circumstances where to be included as a Star Manager funds had to have a minimum size of $30 million and a minimum track record of five years.

Commenting on the Star Managers, SQM Research founder and chief executive, Louis Christopher noted the risk-adjusted nature of the exercise and this year’s dominance of Australian equities managers.

He said this reflected that global equities managers had struggled amid continued economic volatility.

The FNW/SQM Research Star Manager status recognises the performance and consistency of fund managers who outperform their peers and have consequently gained a notable reputation.

To determine the ratings, SQM Research looks at a manager’s ability to create risk-adjusted alpha, outperformance in both rising and falling markets, and those who consistently beat their benchmarks.

The research house developed a list of the Top 10 of Australia’s managers by evaluating 3-year track records across 500-600 funds with a minimum fund size of $30 million.

The Star Managers will be awarded at the Financial Newswire/SQM Research Fund Manager of the Year Awards on 14th September, in Sydney.