Despite big reputations and even bigger funds under management (FUM), five fund managers did not deliver at the bi-annual recalculation of the FE Crown Ratings, instead slammed with low ratings.
The $2 billion-and-above funds from Macquarie, Platinum, Janus Henderson, Schroders and Dimensional all either dropped in ratings or remained the same at two-Crowns, suggesting perhaps size doesn’t really matter, or equate to good performance.
At $10.9 billion in FUM and the biggest fund with one of the lowest Crown ratings, Platinum International is perhaps the biggest disappointment.
It calls the ACS Equity – Global sector home, and produced returns of 12.96 per cent for the year to 31 July 2018, well below the sector average of 16.37 per cent.
As well, while the returns of the peer group dropped in the 6 months to last month’s end to 4.51 per cent, Platinum International fell into the negative with -2.80 per cent returns, and it’s not the only Platinum fund in the mix either, with Platinum’s $4.5 billion Asia fund similarly receiving a two-Crown rating.
Platinum International’s co-portfolio manager, Clay Smolinski, said the fund had lagged in performance due to the portfolio’s 25 per cent weighting in China given the region produced stocks at attractive prices as a result of the macro issues affecting the market.
Smolinski said the declining rate of credit growth and the escalation of the trade war between the United...