Key Takeaways
- • Glenmore Asset Management's Australian Equities Fund delivered the highest return among Australian funds in FY23–24, posting a 31% gain before fees versus a 12.5% benchmark return, representing an 18.5 percentage point outperformance over the S&P/ASX All Ordinaries Accumulation Index.
- • ECP Asset Management's All Cap Australian Equities Fund ranked second with a 29.1% return, followed by Smallco's Broadcap Fund (26.2%) and Selector Funds Management's High Conviction Equity Fund (20.5%), indicating concentrated strength in mid-cap and small-cap Australian equity strategies.
- • Long-short equity strategies significantly outperformed during FY23–24, with three such funds appearing in the top 10 performers (Auscap, Platypus, and Acadian), driven by meaningful contributions from short exposures in a market characterized by multiple expansion rather than earnings growth.
- • Glenmore's fund also led over a three-year period with an annualized return of 17.2%, demonstrating consistent outperformance beyond the single-year benchmark, according to Mercer's investment manager survey.
- • The top 10 performing funds collectively ranged from 18.7% to 31% returns, with all top performers exceeding the 12.5% benchmark return by significant margins, reflecting a competitive active management environment in Australian equities during the period.
Summary
Glenmore Asset Management's Australian Equities Fund emerged as the clear winner in the FY23–24 performance sweepstakes, delivering a 31% return before fees over the 12 months to June 2024, according to Mercer's latest investment manager survey. This performance substantially outpaced the S&P/ASX All Ordinaries Accumulation Index benchmark of 12.5%, marking an 18.5 percentage point outperformance. The fund's dominance extended across longer time horizons, with Glenmore posting a three-year annualized return of 17.2%, securing the top ranking over that extended period as well.
The competitive landscape below the top performer revealed a cluster of strong performers, with ECP Asset Management's All Cap Australian Equities Fund capturing second place with a 29.1% return, followed by Smallco's Broadcap Fund at 26.2% and Selector Funds Management's High Conviction Equity Fund at 20.5%. This ranking pattern indicates particular strength in mid-cap and small-cap equity strategies during the period. The complete top 10 list included Forager Australian Value (19.9%), Hyperion Australian Growth (19.5%), Auscap Long Short Australian Equities (19.3%), Platypus Australian Equities (19.3%), Tribeca Alpha Plus Fund (19%), and Acadian Australian Long Short Equity (18.7%).
A notable trend emerged in the performance data: long-short equity strategies dominated the upper rankings, with three such funds securing positions in the top 10. According to Shannon Reilly, Mercer's head of equities for the Pacific region, this outperformance reflected meaningful contributions from short exposures during the period. Reilly noted that while Australian indices declined modestly in the final quarter following two consecutive quarters of gains, the overall financial year represented a "solid" period. He attributed the bulk of returns during the June quarter to multiple expansion rather than earnings growth, a dynamic that particularly favored active managers with tactical positioning capabilities.
The FY23–24 results underscore the potential for skilled active management to generate substantial alpha in the Australian equity market, with all top 10 performers delivering returns materially in excess of the benchmark index.
The competitive landscape below the top performer revealed a cluster of strong performers, with ECP Asset Management's All Cap Australian Equities Fund capturing second place with a 29.1% return, followed by Smallco's Broadcap Fund at 26.2% and Selector Funds Management's High Conviction Equity Fund at 20.5%. This ranking pattern indicates particular strength in mid-cap and small-cap equity strategies during the period. The complete top 10 list included Forager Australian Value (19.9%), Hyperion Australian Growth (19.5%), Auscap Long Short Australian Equities (19.3%), Platypus Australian Equities (19.3%), Tribeca Alpha Plus Fund (19%), and Acadian Australian Long Short Equity (18.7%).
A notable trend emerged in the performance data: long-short equity strategies dominated the upper rankings, with three such funds securing positions in the top 10. According to Shannon Reilly, Mercer's head of equities for the Pacific region, this outperformance reflected meaningful contributions from short exposures during the period. Reilly noted that while Australian indices declined modestly in the final quarter following two consecutive quarters of gains, the overall financial year represented a "solid" period. He attributed the bulk of returns during the June quarter to multiple expansion rather than earnings growth, a dynamic that particularly favored active managers with tactical positioning capabilities.
The FY23–24 results underscore the potential for skilled active management to generate substantial alpha in the Australian equity market, with all top 10 performers delivering returns materially in excess of the benchmark index.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.