About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Monday, October 20th, 9:28PM
rss
Investment News

Managers add value locally

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

Tuesday, October 30th 2001, 9:00AM

The September quarter results were dominated by the events of 11 September:

  • Overseas markets were down 15.3% although they have since recovered somewhat,
  • The local share market fell 9.9%,
  • The NZ dollar fell 5.4% as measured by the TWI, benefiting those managers with high currency exposures, and
  • Fixed interest markets rose by around 3 to 4%, while the CPI rose 0.6%, giving a 2.4% result for the recent 12 month period.

The average return for the fund managers for the quarter was –6.4% with –8.0% for the year.

Of interest is the wide range of exposure to foreign currency varying from a low of 12.6% for ACM to 35.2% for AMPH.

Do Managers add value?
The average result for the last 12 months was –1.6% with one manager losing 8.7%. Interestingly managers only added value in the local asset sectors excluding property.
 
Manager results for the last 12 months
With overseas share manager results varying between –13.8% to –41.9% this sector again dominated the overall fund results. A particular feature of the negative returns is that those managers with no passive funds and only active shares have boosted their relative net results thanks to tax credits on their losses.
  • Alliance Capital Their performance has slipped on the back of poor local share numbers albeit they continue to achieve good local fixed interest and cash numbers.
  • Arcus Investment Management While their overall result slipped for the last quarter they continue to achieve good 12 month results partly on the back of their strong Australasian share results.
  • Armstrong Jones The results for the total fund continue their poor run due to poor numbers from their overseas share manager. In contrast their local share numbers are improving.
  • AMP Henderson Global Investors Their numbers are getting better. They now rank 3rd for value added in the last quarter.
  • ANZ Asset Management Their performance has slipped with continuing poor numbers in the local share sector. Their best sector is overseas fixed interest.
  • BNZ Investment Management Their absolute return numbers are consistently above average. The Templeton overseas growth style fund has achieved excellent results.
  • BT Funds Management Their fund’s performance has slipped to an average ranking in the last 12 months on the back of poor local and overseas fixed interest results and poor asset allocation decisions. As expected their local share manager continues to achieve good value added numbers.
  • Colonial First State Their fund has produced a very respectable result boosted partly by their low exposure to growth assets. Their local and overseas share results continue to impress.
  • Global Retriement Trust While their performance has marginally improved this quarter they have continued to suffer from their 100% exposure to a passive overseas share portfolio.
  • Guardian Trust Funds Management While their fixed interest and cash results are either ranked 1st or 2nd their overall result has been dragged down by a poor local share result. Their overseas share result is above average.
  • Tower Asset Management They have continued as the number 1 value added manager for a second quarter. Their local share numbers are starting to return to their historical above average position.
  • WestpacTrust Investment Management Their fund has slightly better results than their sub manager AJ due principally to their greater exposure to foreign currency.

Table 1 - Actual Gross Returns (before fees and tax)

Total Fund (after fees and tax)
Manager 3 mths (%) 1 yr (%) 3 yr (%) 5 yr (%)
ACM -6.1 (11) -8.1 (9) 4.3 (7) 4.6 (11)
AIM -5.5 (10) -6.3 (6) 4.7 (4) n.a
AJ -4.7 (5) -9.7 (11) 3.1 (12) 5.5 (8)
AMPH -6.7 (12) -10.9 (12) 3.9 (9) 5.5 (9)
ANZAM -4.6 (4) -4.8 (3) 4.4 (6) 5.7 (7)
BNZIM -5.2 (9) -5.5 (4) 5.9 (1) 7.1 (1)
BTFM -4.2 (3) -5.8 (5) 5.5 (2) 6.0 (4)
CFS -3.7 (2) -2.6 (2) 5.3 (3) 5.7 (6)
GRT -5.1 (8) -7.5 (8) 4.5 (5) 5.9 (5)
GTFM -5.1 (7) -6.7 (7) 3.5 (10) 6.0 (3)
TAM -2.7 (1) -1.5 (1) 4.3 (8) 6.3 (2)
WIM -5.0 (6) -8.2 (10) 3.4 (11) 4.7 (10)
Average -4.9 -6.5 4.4 5.7
Index -3.3 -4.3 4.4 6.0

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 30 basis points was assumed.
3. AIM, ANZAM, and GRT were unable to supply net figures. Fees of 30 b.p and tax at 33% were assumed.
4. ACM and ANZAM share returns are 'active'. AMPH and BNZIM 'passive' returns are unhedged.
5. 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 -2.1 (9) -3.8 (9) 0.2 (6) -0.7 (6)
AIM -1.9 (8) 0.1 (4) 0.6 (3) n.a
AJ -2.7 (10) -8.7 (11) -1.9 (11) 0.1 (3)
AMPH 0.0 (3) -0.5 (5) -0.8 (10) -1.0 (7)
ANZAM -1.8 (7) -1.3 (7) 0.4 (5) 1.1 (1)
BNZIM 0.0 (4) 0.7 (3) 0.7 (2) -0.3 (5)
BTFM -1.2 (6) -1.0 (6) 2.0 (1) 0.7 (2)
CFS 0.4 (2) 2.4 (2) 0.5 (4) -2.4 (10)
GRT -4.0 (11) -6.8 (10) -0.2 (8) -1.2 (8)
GTFM n.a n.a n.a n.a
TAM -0.6 (5) 3.8 (1) 0.0 (7) -0.1 (4)
WIM 0.5 (1) -2.2 (8) -0.7 (9) -1.6 (9)
Average -1.2 -1.6 0.1 -0.5

Asset Allocation
Manager 3 mths (%) 1 yr (%) 3 yr (%) 5 yr (%)
ACM -0.5 (8) -0.1 (8) 0.0 (3) 0.1 (4)
AIM n.a n.a n.a n.a
AJ 0.2 (4) -0.1 (7) 0.2 (2) 0.6 (1)
AMPH -0.2 (7) 0.6 (3) -0.1 (4) -0.3 (6)
ANZAM 0.5 (2) 0.5 (5) -0.2 (6) 0.5 (2)
BNZIM 0.3 (3) 0.9 (2) 0.9 (1) 0.5 (3)
BTFM -1.2 (9) -0.9 (9) -0.1 (5) -0.1 (5)
CFS 1.2 (1) 3.1 (1) -0.8 (9) -1.6 (9)
GRT n.a n.a n.a n.a
GTFM n.a n.a n.a n.a
TAM 0.1 (5) 0.5 (4) -0.7 (8) -0.3 (7)
WIM -0.1 (6) 0.3 (6) -0.3 (7) -0.8 (8)
Average 0.0 0.5 -0.1 -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 September 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 12.2 7.8 0.6 16.1 19.8 6.9 63.5 18.8 11.6 6.1 36.5 12.6 Positive
AIM 11.8 0.0 5.1 45.5 0.0 4.6 67.0 15.3 10.3 7.4 33.0 22.5 Neutral
AJ 20.0 0.0 0.0 33.5 0.0 12.2 65.7 23.0 10.6 0.7 34.3 18.8 Positive
AMPH 8.6 7.1 0.0 0.0 41.4 5.8 62.9 24.7 6.3 6.1 37.1 35.2 Positive
ANZAM 5.0 7.7 2.6 40.1 0.0 5.7 61.1 23.3 14.1 1.5 38.9 21.6 Neutral
BNZIM 3.9 15.1 0.0 7.1 23.3
« Are hedge funds a seperate asset class?King 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