Conexus sees conflict in fund manager awards


Editor’s introduction

Colin Tate is CEO of Conexus Financial, publisher of several trade titles. We admire that he has taken a stance against fund manager awards where conflicts arise. As he says, the awards encourage short termism and the outcome may be influenced by contributions to the revenues of various agencies.

Cuffelinks recently discussed with a major research house the possibility of a new award for the best Listed Investment Company (LIC) and/or Exchange Traded Fund (ETF). We soon realised the dilemma this would create. Any event needs sponsorship, and obviously, LIC and ETF providers would be prime candidates to support the event. But they are unlikely to sponsor an award to one of their competitors, placing the organisers in a compromised position. Some of these award nights have so many prizes, it feels like there’s something for everyone.

We reproduce Colin’s letter to his subscribers below.  


Professional standards in the advice and wealth management industry are shifting quickly. As a publisher and a thought leader, it’s important to be ahead of the curve at all times, which is why we’ve made the decision to discontinue our successful Professional Planner/Zenith Fund Awards.

This decision is in no way intended to take away from the efforts and successes of the winners and finalists.

In recent years, I’ve been struggling to see how sell-side awards ceremonies add any value to the client, not to mention what this backslapping looks like to people outside the industry. By people outside the industry, I mean those paying a percentage of their savings for returns to afford a better lifestyle and a dignified retirement.

The Hayne Royal Commission hearings and interim findings have already called out many conflicts of interests, but many more will be called out in coming months and the industry needs to make some of these calls itself to move forward. I think the fund ratings process is one of the areas that needs to change, which is why – despite the revenue opportunity for our company – we are walking away from the awards.

Conexus Financial, the privately-owned publisher of Professional Planner, holds 20 events across its three titles, which also include Investment Magazine and

The fund awards are the only sell-side event in our stable. The event is inconsistent with our mission to push the industry to lift professional standards and, ultimately, further the interests of the member and the end investor.

By promoting the awards, we are inadvertently promoting short-term behaviour, which is not what investment or super should be about. Firstly, from a portfolio construction point of view, there’s plenty of evidence to suggest that it’s asset allocation, not fund manager selection, that makes the difference to investor returns over the long term.

Further, the role of fund ratings and research houses in the ecosystem is heavily conflicted and, indeed, is hampering the progress of the industry towards professionalism. Requiring fund managers to pay for ratings makes the system favour larger managers with multiple funds because they contribute more to the revenues of the ratings agencies. It’s these types of arrangements that end up creating worse – not better – outcomes for clients.

There are too many agents in this industry already. We need to do much better for the end customer in this regard.

Following the Royal Commission’s final report in February, serious reform will be on the way and there will be no appetite for the financial industry to be congratulating itself, so we are moving now to set the right tone.

Conexus Financial, through Professional Planner and its other mastheads, has core values of making a quantifiable difference, promoting inclusion for women and minorities, and championing diversity in general. Our goal is to encourage growth within the industry, while also promoting more participation in clear and sustainable investment outcomes for individuals and society. In every venture, and in every area, our efforts must reflect these values to remain current, contemporary and relevant.

We thank S&P and subsequently Zenith, along with all our partners, for their past support.

Colin Tate
Chief Executive
Conexus Financial

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One Response to Conexus sees conflict in fund manager awards

  1. Chris S November 29, 2018 at 11:50 AM #

    We need to see many more CEOs to also take such principled stands. These industry events with effusive and gratuitous backslapping are often a slap in the face for people who have suffered at the hands of operators in the industry.

    This covers not just financial services, but many other industries that have endemic and ingrained horrendous behaviour – motor industry (VW for example), RV industry (lemon caravans), construction (leaky apartments that never get fixed). The list goes on.

    Yet the victims of this behaviour often sees the most egregious examples rewarded by their industry associations. Victims are re-victimised all over again.

    Too often, abusers are protected, rewarded and all too often held up as paragons by their respective peers, shows that there is something really, really rotten in far too many of our institutions.

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