In a statement issued yesterday, Pengana head of distribution Damian Crowley said the first test advisers should apply is “correlations to the equities markets and to the other major asset classes including bonds and listed property”.
Second, advisers should separate returns from funds into ‘alpha’ and ‘beta’ segments to establish how much is skill-based or market-based.
Third, the fund manager advises asking whether the fund is truly ‘benchmark-aware’. “The benchmarks capture everything, so they’re reflecting current market capitalisation, not necessarily the best investment opportunities at that time or quality and value metrics,” Mr Crowley said.
We have enough on the plate already-soon we will spend all day just making sure we are compliant and can’t be sued, no-time to give advice. Just maybe the fundies can step up and make life easy and publish the info required.
Then again we can all become ISN “””???advisers””??? and have no worries or conscience.
Isn’t that what our expert ratings agencies are supposed to do? Oh, I forgot…they can’t be relied up. ASIC said so. Using ETFs all of a sudden seems even more compelling.