About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Friday, October 31st, 8:44AM
rss
Investment News

Melville Jessup Weaver

Investment survey - March 2001

Wednesday, May 9th 2001, 3:48PM

Investment Survey - March 2001

Consulting actuaries Melville Jessup Weaver report on what happened in the past quarter and how the fund managers fared.

March quarter features
The main features of the March quarter were:

  • Strong performance from the local share market, particularly from the larger stocks,
  • Overseas share markets performed poorly, losing 9.9% in local currency terms (i.e. on a hedged basis), amid fears of a world economic slowdown,
  • Steady returns from fixed interest markets, with the local and overseas markets returning 2.2% and 2.9% respectively,
  • The NZ dollar weakened against most major trading partners, notably down 9.0% against the US dollar, and
  • The CPI fell 0.2%, strongly influenced by the move to income-related rents for Housing New Zealand tenants.

The average return for the fund managers surveyed was -0.8%.

Do Managers add value?
While 4 managers in the last 12 months did, for the average manager the answer is no.

Highly volatile results
The top balanced fund manager achieved a result of 5.2% for the year, with the bottom manager achieving -6.2%, a variation of 11.4%.

Manager results for the last 12 months
Our comments are primarily focused on our view of how well the manager's fund is constructed to provide consistent annual returns to an investor.
  • Alliance Capital - The fund is well constructed for consistent performance which has served it well in the last 12 months. The property returns continue to languish.
  • AMP Henderson Global Investors - The fund with its emphasis on passive share exposure has suffered accordingly in the last 12 months. The local fixed interest result remains good
  • Arcus Investment Management - While their absolute results over the last year have dropped significantly, performance assessed on a value added basis is average. Exposure to listed property has boosted the overall result.
  • Armstrong Jones - The fund has suffered from its sole focus on investing in growth overseas shares. They continue to provide solid property returns
  • ANZ Asset Management - The fund is well constructed and in the last 12 months provided a good absolute return. The manager continues to add value.
  • BNZ Investment Management - The fund is reasonably well constructed and they have had a very good past 12 months. The individual sector results remain around average.
  • BT Funds Management - The fund has suffered from a solely growth oriented overseas share exposure. They continue to add significant value in the local share sector.
  • Colonial First State - Over the last 12 months they have added reasonable value despite a poor overseas share result.
  • GRT - The fund continues to suffer from overexposure to passive assets. The addition of an active local manager should contribute towards better and more consistent future results.
  • Guardian Trust Funds Management - The well constructed overseas share portfolio has helped their results improve. While local shares returns over the past 12 months have been poor, they are top in local fixed interest.
  • NZ Funds Management - The fund's overall result has slipped due to the performance of their share managers. They had a good result for the cash sector.
  • Tower Asset Management - Their results have turned completely around on the back of their value-oriented overseas share manager. They are well placed to now consider adding a growth manager to their overseas share exposure.
  • WestpacTrust Investment Management - · With the decision to switch all their investments to AJ, WIM need to consider the performance implications for the fund of the consequent overseas share exposure to solely growth shares.

Actual Gross Returns (before fees and tax)

Total Fund (after fees and tax)
Mngr 3 mths (%) 1 yr (%) 3 yr (%) 5 yr (%)
ACM 0.3 (2) 1.4 (4) 4.5 (11) 6.3 (10)
AIM -1.3 (10) -2.0 (11) 5.6 (4) n.a  
AJ -2.5 (13) -4.4 (13) 4.2 (12) 7.0 (8)
AMPH -0.7 (7) -3.5 (12) 4.5 (10) 6.8 (9)
ANZAM -0.9 (9) 1.1 (5) 5.0 (8) 7.1 (7)
BNZIM 1.9 (1) 2.0 (3) 6.4 (2) 8.6 (1)
BTFM -0.7 (6) 0.1 (6) 5.7 (3) 7.1 (5)
CFS -1.4 (11) 2.3 (2) 5.5 (5) n.a  
GRT -0.6 (5) -1.5 (10) 5.2 (6) 7.2 (4)
GTFM -0.2 (4) -0.1 (7) 5.1 (7) 7.6 (3)
NZFM -0.8 (8) -1.5 (9) 6.4 (1) 7.9 (2)
TAM 0.3 (3) 2.9 (1) 4.6 (9) 7.1 (6)
WIM -2.2 (12) -1.2 (8) 4.1 (13) 5.8 (11)
Average -0.7   -0.3   5.1   7.1  
Index 0.0   0.8   4.7   7.0  

Notes:  1. The index return for the total fund is the average of the benchmark returns of the managers. 
  2.  ACM, AJ and GTFM provided their net returns on a pre-fees basis. A net fee of 24 basis points was assumed.
  3. AIM, ANZAM, GRT and NZFM were unable to supply net figures. Fees of 24 b.p and tax at 33% were assumed.
  4. The average is the arithmetic mean of all the managers' results.
  5. The share returns in respect of ACM, AMPH, ANZAM, and BNZIM are for active funds.
  6. FUM (Funds Under Management) is in $m and is in respect of the funds analysed and performance results shown.

Table 2: Value Added

Total Fund
Manager 3 mths (%) 1 yr (%) 3 yr (%) 5 yr (%)
ACM -0.1 (3) -0.3 (5) 0.3 (5) -0.2 (5)
AIM -0.5 (6) -0.8 (6) 2.3 (3) n.a  
AJ -3.7 (12) -6.9 (12) 0.2 (6) 0.9 (4)
AMPH -0.3 (4) -3.4 (10) -1.5 (12) -1.5 (9)
ANZAM -0.4 (5) 1.1 (2) 1.8 (4) 1.4 (2)
BNZIM 1.0 (2) 0.6 (3) 0.2 (7) -0.2 (6)
BTFM -1.7 (9) -2.4 (8) 2.5 (2) 1.0 (3)
CFS -3.3 (11) 0.5 (4) -0.3 (9) n.a  
GRT -0.6 (7) -5.8 (11) -0.3 (10) -0.7 (8)
GTFM n.a   n.a   n.a   n.a  
NZFM -0.9 (8) -3.1 (9) 2.6 (1) 1.6 (1)
TAM 1.6 (1) 4.4 (1) 0.1 (8) -0.3 (7)
WIM -3.1 (10) -2.3 (7) -1.3 (11) -2.0 (10)
Average -1.0   -1.5   0.6   0.0  

Asset Allocation
Manager 3 mths (%) 1 yr (%) 3 yr (%) 5 yr (%)
ACM 0.2 (3) 0.2 (6) 0.1 (5) 0.3 (4)
AIM n.a   n.a   n.a   n.a  
AJ -0.1 (9) -0.1 (9) 0.4 (3) 0.5 (1)
AMPH 0.2 (4) 0.3 (5) 0.0 (6) -0.3 (6)
ANZAM 0.3 (2) 0.0 (7) 0.3 (4) 0.5 (3)
BNZIM 0.0 (6) 0.5 (2) 0.9 (2) 0.5 (2)
BTFM 0.2 (5) 0.4 (3) 1.0 (1) -0.1 (5)
CFS 0.3 (1) 1.3 (1) -0.3 (7) n.a  
GRT n.a   n.a   n.a   n.a  
GTFM n.a   n.a   n.a   n.a  
NZFM n.a   n.a   n.a   n.a  
TAM -0.1 (8) 0.3 (4) -0.3 (8) -0.3 (7)
WIM 0.0 (7) -0.1 (8) -0.4 (9) -0.8 (8)
Average 0.1   0.3   0.2   0.0  

Notes:  1. No figures are shown for GTFM as no benchmark asset allocations are available.
  2.  The asset allocation figures are the difference between the value added in total and that added for stock selection.

Table 3 - Actual Asset Allocation as at 31 March 2001

Manager

NZ Shares

Aus

O'seas Shares

Property

Growth

NZ

O'Seas

Cash

Income

Currency

Currency
  Active Passive Shares Active Passive   Assets Fixed Int Fixed Int   Assets Exposure Outlook
ACM 8.1 8.1 0.4 18.1 16.9 7.0 58.6 19.7 14.3 7.5 41.4 21.7 Positive
AIM 10.9 0.0 4.7 44.7 0.0 4.3 64.6 14.7 5.5 15.2 35.4 21.9 Positive
AJ 18.7 0.0 0.0 35.6 0.0 10.3 64.6 19.0 12.0 4.4 35.4 19.1 Positive
AMPH 0.0 17.8 0.0 0.0 43.1 5.4 66.3 22.1 6.0 5.6 33.7 34.5 Positive
ANZAM 4.9 7.8 2.5 38.4 0.0 5.2 58.9 23.3 13.0 4.8 41.1 18.8 Neutral
BNZIM 3.6 15.7 0.0 6.1 23.7 0.0 49.0 14.5 35.3 1.1 51.0 30.7 Neutral
BTFM 19.6 0.0 0.0 37.6 0.0 4.6 61.8 20.2 12.6 5.4 38.2 18.8 Neutral
CFS 6.0 0.0 13.9 29.7 0.0 0.0 49.6 0.0 50.4 0.0 50.4 14.5 Positive
GRT 0.0 12.7 0.0 0.0 32.1 6.9 51.7 23.2 15.4 9.7 48.3 16.1
« Portfolio Talk: Hedge funds smooth rough marketKing builds an empire »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend

Good Returns Investment Centre is bought to you by:

Subscribe Now

Keep up to date with the latest investment news
Subscribe to our newsletter today

Edison Investment Research
  • BB Biotech AG
    21 July 2014
    Double-digit returns with a double-digit discount
    BB Biotech AG (BION) is a Swiss-based investment company specialising in the biotechnology sector, with a focus on mid-sized and larger companies that...
  • Witan Pacific Investment Trust
    15 July 2014
    Pan-Asian multi-manager solution
    Witan Pacific Investment Trust (WPC) aims to achieve long-term capital and real dividend growth primarily through equity investments in the Asia-Pacific...
  • Schroder AsiaPacific Fund
    9 July 2014
    Finding value in the Asian growth story
    Schroder AsiaPacific Fund (SDP) aims to achieve long-term capital growth by investing in companies across Asia, excluding Japan. At the helm since launch...
  • Templeton Emerging Markets Inv. Trust
    7 July 2014
    Emerging markets picking up, but still offer value
    Templeton Emerging Markets Investment Trust (TEMIT) aims to achieve long-term capital gains through investing in companies operating in emerging markets....
  • Invesco Asia Trust
    26 June 2014
    Positive performance from ‘best ideas’ portfolio
    Invesco Asia Trust (IAT) aims to achieve long-term capital growth through investing in undervalued companies in the Asia-Pacific region, including Australia...
  • The Biotech Growth Trust
    25 June 2014
    Correction provides value opportunity
    The Biotech Growth Trust (BIOG) aims to achieve growth by investing in biotechnology companies around the world, though in practice it is heavily weighted...
© 2014 Edison Investment Research.

View more research papers »

Today's Best Bank Rates
RaboDirect 4.60  
Based on a $50,000 deposit
More Rates »
Cash PIE Rates

Cash Funds

Institution Rate 33% 39%
ANZ 2.60    2.67    2.79
ASB Bank 3.15    3.29    3.44
BNZ 3.70    3.44    3.60
Direct Broking Call Account 2.80    2.92    3.05
Heartland Bank 4.00    4.28    4.48
Kiwibank 2.40    2.50    2.61
Kiwibank 3.15    3.29    3.44
Nelson Building Society 3.75    3.90    4.08
RaboDirect 3.30    3.44    3.60
SBS Bank 3.25    3.11    3.28
TSB Bank 3.50    3.63    3.80
Westpac 3.15    3.24    3.39
Westpac 0.10    0.10    0.11
Westpac 4.00    4.18    4.37

Term Funds

Institution Rate 33% 39%
ANZ Term Fund - 90 days 3.00    3.08    3.22
ASB Bank Term Fund - 90 days 3.00    3.08    3.22
ASB Bank Term Fund - 6 months 3.75    3.85    4.02
ASB Bank Term Fund - 12 months 4.00    4.18    4.37
ASB Bank Term Fund - 18 months 4.10    4.28    4.48
ASB Bank Term Fund - 2 years 4.20    4.40    4.59
ASB Bank Term Fund - 5 years 5.00    5.25    5.49
ASB Bank Term Fund - 9 months 4.00    4.18    4.37
BNZ Term PIE - 120 days 3.70    3.58    3.75
BNZ Term PIE - 150 days 3.70    3.38    3.53
BNZ Term PIE - 5 years 5.50    5.58    5.83
BNZ Term PIE - 2 years 4.80    4.60    4.81
BNZ Term PIE - 18 months 4.60    4.40    4.59
BNZ Term PIE - 12 months 4.50    4.18    4.37
BNZ Term PIE - 9 months 4.35    3.97    4.14
BNZ Term PIE - 6 months 4.30    3.97    4.14
BNZ Term PIE - 90 days 3.50    3.08    3.22
Co-operative Bank PIE Term Fund - 6 months 4.00    4.11    4.30
Heartland Bank Term Deposit PIE - 12 months 4.60    4.54    4.74
Kiwibank Term Deposit Fund - 90 days 3.30    3.38    3.53
Kiwibank Term Deposit Fund - 6 months 3.75    3.85    4.02
Kiwibank Term Deposit Fund - 12 months 4.10    4.20    4.41
Kiwibank Term Deposit Fund - 150 days 3.60    3.70    3.86
Kiwibank Term Deposit Fund - 120 days 3.30    3.38    3.53
RaboDirect Term Advantage Fund - 12 months 4.00    4.11    4.30
RaboDirect Term Advantage Fund - 6 months 3.85    3.96    4.14
RaboDirect Term Advantage Fund - 90 days 3.25    3.34    3.49
Westpac Term PIE Fund - 150 days 3.50    3.34    3.49
Westpac Term PIE Fund - 120 days 3.50    3.34    3.49
Westpac Term PIE Fund - 18 months 4.50    4.32    4.51
Westpac Term PIE Fund - 12 months 4.20    3.96    4.14
Westpac Term PIE Fund - 6 months 3.75    3.86    4.03
Westpac Term PIE Fund - 9 months 3.80    3.90    4.08
Westpac Term PIE Fund - 90 days 3.00    3.09    3.22
Westpac Term PIE Fund - 2 years 4.75    4.52    4.72
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by PHP Developer and eyelovedesign.com