wealth watch
STEPHEN CRANSTON: Investing at arm’s length, the Morningstar way
The fund managed to perform reasonably in 2018, despite the culling that occurred in the market
I don’t often get insight into the returns of the so-called designated fund managers (DFMs). These businesses help financial planners in their fund selection and asset allocation. Analytics, PortfolioMatrix and FundHouse must be the best known. Morningstar, our strategic partner on the annual fund awards, also owns a select boutique DFM that has decided to use the Morningstar brand as well. It is hard to know what to believe when unaudited managed portfolio returns are served up. But Morningstar Investment boss Vicki Reuvers seems trustworthy enough; she went to the best girls’ school in Cape Town after all. There are five Morningstar managed portfolios. They didn’t cover themselves in glory in absolute terms last year, but they did better than most of the standalone funds in their sectors. The balanced portfolio was in the first quartile of the medium equity portfolio, though with a modest 1.2% return for the year. They should probably get rid of the ad agency that decided to call ...
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