Last quarter's winners and losers

Consulting actuaries Melville Jessup Weaver give their report on each fund manager's performance in the June quarter.

Tuesday, July 31st 2001, 9:17AM

by Mark Weaver

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

Solid performance from the local sharemarket, with the Montana saga generating much interest in the lead up to the introduction of a new takeover code

Overseas sharemarkets returned 3.7% in local currency terms (ie on a hedged basis), supported by central banks easing interest rates

The NZ dollar was firm against most major currencies, notably including the US dollar, and

The CPI rose 0.9%, influenced by transportation costs flowing on from rising petrol prices.

The average return for the fund managers surveyed was 2.8%.

Do Managers add value?
The results are very time dependent with 'yes' the managers added value over 3 months and 3 years but 'no' over the 1 and 5 year periods.
Manager results for the last 12 months
The total fund return results over the last 12 months are dominated by the returns achieved by each manager in the local and overseas shares sectors.
Alliance Capital - Despite good performance in the two fixed interest sectors, their poor overseas share result has dragged down their ability to add value to total fund performance.
AMP Henderson Global Investors - A move to include active New Zealand shares has produced an immediate increase in overall returns. While Table 1 shows an active return of 9.2% for local shares, the new Strategic Equity Growth fund produced a 18.2% return for the quarter.
Arcus Investment Management - Strong local share performance, with part exposure to Australian shares, helped achieve good value added results.
Armstrong Jones - The weakness of their bias to a growth overseas share manager has seen another poor 12 month result. Overseas fixed interest results continue to show good results.
ANZ Asset Management - Overseas share fund with a combination of a style neutral manager and an index fund has underpinned good above average value added returns.
BNZ Investment Management - BNZ's conservative asset allocation has produced an above average 12 month result. It is interesting to see that the passive overseas share fund has 'outperformed' the similar AMPH fund, over all 3 time periods where results are available.
BT Funds Management - While their fund shows good value added over the 3 and 5 year periods their overseas share fund has consistently lost value. The local share fund continues to shine.
Colonial First State - The transfer of operations to Australia coincides with achieving the top quarterly performance position. However their overseas share results are below average over the longer periods.
GRT - Their switch to include an active local share manager has produced an immediate boost in performance for the 3 months. Overall their selected managers are above average in each of their asset sectors for the last quarter.
Guardian Trust Funds Management - Overall results are disappointing with only significantly above average returns in local fixed interest and cash, both sectors where absolute returns vary little.
Tower Asset Management - TAM achieved average or better returns in all sectors except local fixed interest, and continue to maintain the top 1 year value added position.
WestpacTrust Investment Management - The results for the fund shown are now totally dependent on the outcomes achieved by their sub-manager AJ.
Table 1 - Actual Gross Returns (before fees and tax)

Total Fund (after fees and tax)
Mngr	3 mths (%)		1 yr (%)		3 yr (%)		5 yr (%)
ACM	1.4	(9)	0.3	(7)	5.3	(8)	6.5	(10)
AIM	2.1	(4)	0.7	(5)	6.1	(4)	n.a
AJ	1.1	(10)	-3.2	(12)	4.5	(10)	7.2	(8)
AMPH	2.8	(2)	-1.7	(11)	5.2	(9)	7.3	(7)
ANZAM	1.8	(6)	1.6	(4)	5.7	(5)	7.3	(6)
BNZIM	1.8	(8)	2.6	(3)	6.5	(3)	8.7	(1)
BTFM	1.9	(5)	0.3	(8)	6.7	(1)	7.3	(5)
CFS	4.3	(1)	4.0	(1)	6.7	(2)	6.9	(9)
GRT	2.2	(3)	-0.3	(9)	5.6	(6)	7.4	(3)
GTFM	0.9	(11)	0.4	(6)	5.3	(7)	7.6	(2)
TAM	1.8	(7)	3.4	(2)	4.5	(11)	7.3	(4)
WIM	0.9	(12)	-1.2	(10)	4.3	(12)	6.0	(11)
Average	1.9		0.6		5.5		7.2
Index	1.3		1.0		4.9		7.3

Notes:

Total Fund
Manager	3 mths (%)		1 yr (%)		3 yr (%)		5 yr (%)
ACM	-0.3	(9)	-2.1	(8)	0.4	(7)	-0.1	(5)
AIM	0.9	(6)	2.4	(3)	2.5	(2)	n.a
AJ	-0.4	(10)	-5.8	(11)	-0.1	(9)	0.9	(3)
AMPH	1.5	(3)	-1.1	(7)	-0.8	(10)	-1.2	(8)
ANZAM	0.9	(7)	1.6	(4)	1.7	(3)	1.6	(1)
BNZIM	0.0	(8)	0.7	(5)	0.2	(8)	-0.3	(6)
BTFM	0.9	(5)	-0.9	(6)	3.3	(1)	1.1	(2)
CFS	4.1	(1)	2.4	(2)	1.2	(4)	-2.8	(10)
GRT	1.6	(2)	-3.7	(10)	0.7	(5)	-0.3	(7)
GTFM	n.a		n.a		n.a		n.a
TAM	1.3	(4)	5.1	(1)	0.5	(6)	0.1	(4)
WIM	-0.6	(11)	-3.0	(9)	-1.2	(11)	-2.0	(9)
Average	0.9		-0.4		0.8		-0.3

Asset Allocation
Manager	3 mths (%)		1 yr (%)		3 yr (%)		5 yr (%)
ACM	0.1	(4)	0.3	(5)	0.1	(6)	0.3	(4)
AIM	n.a		n.a		n.a		n.a
AJ	0.1	(5)	-0.1	(9)	0.5	(3)	0.5	(1)
AMPH	0.4	(1)	0.7	(3)	0.3	(4)	-0.2	(6)
ANZAM	0.0	(8)	-0.1	(8)	0.2	(5)	0.4	(3)
BNZIM	0.1	(6)	0.7	(4)	0.7	(2)	0.5	(2)
BTFM	0.2	(3)	0.7	(2)	1.0	(1)	0.0	(5)
CFS	-0.1	(9)	1.3	(1)	-0.1	(7)	-1.9	(9)
GRT	n.a		n.a		n.a		n.a
GTFM	n.a		n.a		n.a		n.a
TAM	0.1	(7)	0.2	(6)	-0.4	(9)	-0.3	(7)
WIM	0.3	(2)	0.1	(7)	-0.2	(8)	-0.8	(8)
Average	0.1		0.4		0.2		-0.2

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 30 June 2001

Manager

NZ Shares

Aus

O'seas Shares

Property

Growth

O'Seas

Cash

Income

Currency

Active

Passive

Shares

Active

Passive

Assets

Fixed Int

Assets

Exposure

Outlook

ACM

10.6

8.1

0.6

15.7

19.7

6.8

61.5

17.4

13.5

7.6

38.5

12.4

Positive

AIM

11.5

0.0

4.9

46.9

0.0

4.2

67.5

14.1

5.1

13.3

32.5

23.7

Neutral

19.4

0.0

32.5

0.0

10.5

62.4

19.0

12.3

6.3

37.6

18.4

Positive

AMPH

8.2

8.8

0.0

39.2

5.4

61.5

21.5

5.9

11.2

38.5

33.3

Positive

ANZAM

5.1

8.1

2.6

39.8

0.0

5.5

61.2

23.2

13.4

2.3

38.8

19.3

Neutral

BNZIM

4.1

16.4

0.0

6.3

24.7

0.0

51.5

14.7

33.8

0.1

48.5

31.4

Neutral

BTFM

20.1

0.0

39.0

0.0

5.1

64.2

20.0

10.0

5.9

35.8

19.5

Neutral

CFS

6.4

0.0

15.0

30.7

0.0

52.1

0.0

47.9

0.0

47.9

21.6

Positive

GRT

7.8

5.1

0.0

32.0

6.7

51.5

23.3

15.5

9.7

48.5

16.0

n.a

GTFM

12.0

0.0

3.0

Mark Weaver is a principal at consulting actuaries Melville Jessup Weaver.

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Last quarter's winners and losers

Consulting actuaries Melville Jessup Weaver give their report on each fund manager's performance in the June quarter.

Tuesday, July 31st 2001, 9:17AM

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