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1.Market Observations, 2.Strategy

12 Apr 2017 (TheAge,MONEY) – Top Australian share funds named

[COMMENT: I usually bag the managed funds industry because of their general failure to produce reliable returns year-on-year over several years. But this news story names some fund managers which can actually deliver better returns.  The one thing that is very interesting is the comment in the article stating that “…outperformance comes from individual stock selection rather than from sector or following investment themes…’. Even though this does not automatically give a green light to my favourite approaches using technical analysis, it does suggest that many other stock-selection methods are perhaps not so good. ]

(12 April 2017, The Age, MONEY supplement, page1, John Collett)

‘It was not all that long ago that some fund managers had star status with investors. But the gloss has come off as investors receive smaller returns than the market with high fees to boot.  It’s also because there are now low-cost alternatives called exchange traded funds (ETFs) that are available to small investors and DIY super fund trustees. Better to pay a small fee and get the same return as the Australian sharemarket than pay high fees to an active manager who promises to beat the market but underperforms. But analysis by investment researcher Morningstar identifies a handful of fund managers who do deliver on their promises – with long-track records of outperforming the Australian share market. ‘  <snipped…>

‘These include Platypus and Hyperion, whose Australian Growth Companies Funds listed among the top-10 performers is open only to investments of more than $100,000.’ <snipped…>

Stock picker

‘The outperformance comes from individual stock selection rather than from sector or following investment themes.  “It’s not from being overweight or underweight to the banks or to resources – it comes from picking the right banks and the right resources companies,” he says.’

Read more (and see the list of performing funds) at


About robertbrain

Brainy's Share Market Toolbox. Read the honest truth about the sharemarket. Develop or fine tune your investing/trading strategies using share price charts (technical analysis), or learn about the investment strategies of others. Melbourne (Australia) based - supporting share market investors and traders to build wealth through smarter investing using my Share Market Toolbox arsenal of weapons to tackle the market.


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