Aegis Equity Research has included an exchange traded fund (ETF) in a model portfolio for the first time.
Aegis added an ETF from State Street Global Advisers (SSgA), the streetTRACKS S&P/ASX200 Index Fund, to a portfolio of 10 equities, including high-conviction equities, to form the Aegis Australian Share IndexPlus Portfolio (AASIP), which it claims combines broad market exposure with a potential for outperformance. Prior to AASIP, Aegis portfolios were more concentrated, usually comprised of between 10 and 12 individual stocks. “The (AASIP) portfolio is more balanced, with a combination of growth and income stocks and is not an out-and-out alpha play,” David Heather, Aegis Group Executive, said. “Planners want access to direct equity without volatility. The feedback says they’re looking for this,” he said. The model adopts a “core and satellite” approach, in which the streetTRACKS ETF is expected to perform in line with the ASX/200 benchmark while the 10 accompanying equity stocks “might generate additional growth or above-market income,” Heather said. “We’ve created a core and satellite model. There is nothing to stop this being used across a range of different outcomes,” he said.
The $34 billion Brighter Super is set to shift around $10 billion of assets from passive to active management. Chief investment officer Mark Rider says the move is possible because of scale created by mergers, and the fund will be looking to its newly appointed active managers to generate performance through the cycle by taking idiosyncratic risks.
Darcy SongJanuary 21, 2025
