GLOBAL - Australia's largest fund managers raked in the greatest gains in 2003 with BGI topping the list, according to research from InTech Financial Services.
But in the Australian fund management space, big is not always best.
Indeed, for the last three years management-owned Maple-Brown Abbott, which specialises in Australian shares and has a moderate level of funds under management, topped the tables.
AMP, despite a tumultuous 2003, staged a strong recovery, with its balanced growth fund returning 9.4%, ranking it sixth for the year.
“In this industry, there is a stronger argument that large funds under management will actually hurt performance, particularly in specialised areas such as Australian shares and listed property trusts,” according to InTech senior consultant Andrew Korbel.
“This makes the dominance of the big players in the 2003 rankings quite remarkable.”
The meteoric rise of the Australian dollar did, however, shave back the full potential that could have been garnered from stock markets internationally. “If it were not for the rising Australian dollar, the 20% plus returns from world-wide share markets would have meant most growth-oriented super fund investors would have enjoyed double-digit returns this year,” said Korbel.
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