Aussie shares managers hit an unprecedented performance low compared with the index in the last quarter to September, according to the latest data from investment consultant Intech.
Intech’s quarterly report released yesterday said managers averaged 0.8 per cent lower than the S&P/ASX 200 – the worst quarter of underperformance since Intech started collecting such data in 1990.
However, the story is likely to be short-lived.
The 0.8 per cent shortfall was directly linked to the resources exposure of most Australian share managers, according to Intech senior portfolio manager Fraser Murray.
Resources as a sector fell 7.2 per cent and punished managers riding “the momentum wave” of its otherwise solid performance over the past year, Murray said.
Managers with little or no resource stocks returned above the benchmark.
As resources value picked up this month, the figures are likely to turn around again, according to Lazard Asset Management spokesperson Rob Osbourn.
“Last quarter we saw a big retreat on resources, and a marked focus on cheaper undervalued investments. But resources have kicked in again and we’re underperforming again,” Osbourn said.
Lazard’s zero exposure to resources made it the standout performer for Intech’s quarter survey. Lazard Select Australian equity fund (25 stocks) gave a 12.1 per cent return, and its flagship product (30 stocks) returned 7.7 per cent. Value manager Maple-Brown Abbott came a close behind with a 7.1 per cent return.
