Much is being made of the fact that the vast majority of active fund managers are underweight Commonwealth Bank of Australia (CBA). Its strong performance in recent years has led to widespread active management underperformance because it represents over 10% of the All Ordinaries Index. Should this positioning be criticised or encouraged? Is it sensible for investors to have over 10% of their domestic equities portfolios invested in a large domestic retail bank, or are fund managers acting rationally in being less exposed to this one company than the broader market?

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Tim Carleton

Tim Carleton founded Auscap Asset Management in 2012. He has over 20 years’ experience in the financial services industry. From 2007 to 2011 he was an Executive Director at Goldman Sachs where he was responsible for managing an Australian equities portfolio using proprietary funds. Prior to 2007 he worked at Macquarie Bank within the Investment Banking Group. Tim has a Bachelor of Laws (Hons) and a Bachelor of Commerce from the University of Sydney and is a CFA charterholder, a CMT charterholder, a Senior Associate of FINSIA and a Graduate of the Australian Institute of Company Directors (GAICD). 

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.