The Generate Focused Growth Managed Fund has retained a “3 IP” rating by Research IP, with a score of 3.30/5.
The Generate Focused Growth Managed Fund is actively managed and invests in an actively managed diversified portfolio of proven externally managed funds, international equities, property and infrastructure assets, Australasian equities, and cash. The Fund also has the ability to invest in fixed income but it does not have a target asset allocation to this asset class.
What is the Fund’s competitive advantage?
Qualitative Research Report and Data Tear Sheet
Research IP says
“At present the coverage across the Manager’s funds is manageable though as the size of funds under management grow the investment team will need to expand. Naturally this will be a challenge, though Research IP believes the Manager is well-equipped to grow the team when needed. Recent hires in risk and compliance have demonstrated the ability of the Manager to attract experienced professionals in the New Zealand market…The Manager also hired two new global equity analysts in December 2021 and appointed WS Portfolio Advisory LLC as sub-portfolio manager.”
“Within the equity allocation to Australasian equities (including property and infrastructure) the bias will consist of earnings quality and yield factors. The Manager takes an active approach, so stock selection will drive a significant portion of the Fund’s performance over the long-term.“
“The international equity allocation has a quality bias. For example, through listed exposure to Astrazeneca and Berkshire Hathaway Class B shares. However, there is also an element of growth through the Manager’s allocation to the T. Rowe Price Global Equity Growth Fund, and stocks like Microsoft, Visa, Alphabet, and Thermofisher. Since early 2020 the allocation to direct stocks has increased from around 30% of the Fund to approximately 45% in late 2022. The performance contribution of the increased allocation to international companies versus the managed fund exposures is not clear. Therefore, the contribution of the Manager skill is difficult to evaluate.”
“Research IP commends specific actions taken by the Manager in implementing the responsible investment policy to date. The following examples demonstrate the active approach applied by the Manager:
– Signatory to a collaborative engagement to encourage Facebook, Alphabet and Twitter to strengthen controls to prevent the livestreaming and dissemination of objectionable content.
– Significant investment in a community bond where proceeds will be used for specific public housing projects.”
Research IP, 1 December 2022
If you have any questions in relation to this report or the Research IP services, please contact us here.
Disclaimer, Disclosures and Warnings
Research IP strongly recommends this document and report be read in conjunction with the relevant Product Disclosure Statement. Research IP gives no warranty of accuracy or completeness of information in this document. Any information, opinions, views or recommendations are general information only and do not take into consideration any person’s particular financial situation or goals and therefore does not constitute financial advice. This document should not be relied upon as a substitute for financial advice from your financial adviser.
Comments are closed