|
|
Latest Headlines
Return expectations lowered
Fund managers are expecting returns in most asset classes to fall over the next 12 months.
Wednesday, May 12th 1999, 12:00AM
by Philip Macalister
Investment returns for a number of key asset classes, particularly New Zealand equities and property, have weakened over the past three months.
Fund managers surveyed by Aon in its quarterly investment forecasts report, shows that managers have downgraded their return expectations for all asset classes, except cash.
Asset class |
Expected average return over next 12 mths |
Change from last quarter |
Expected five year returns |
Cash |
4.8 |
+0.2 |
5.4 |
Fixed interest |
5.2 |
-0.2 |
6.1 |
Property |
7.8 |
-1.8 |
8.6 |
Equities |
14.3 |
-3.8 |
11.4 |
Intl fixed int |
5.0 |
N/C |
6.0 |
Intl equities |
7.6 |
-0.7 |
10.9 |
Inflation rate |
1.6 |
N/C |
1.8 |
The nine managers surveyed expected cash to return 4.8 per cent over the next 12 months, which is 0.2 per cent better than what was predicted three months ago.
The biggest downgrading has been for New Zealand equities. In this asset classes managers expect the sector to return 14.3 per cent over the next year, compared to an annual return of 17.1 per cent in January.
Likewise property return expectations have been lowered from 9.6 per cent to 7.8 per cent.
The survey also asks managers what they expect each asset class to return over the next five years.
New Zealand equities is the only sector where managers anticipate that the returns over the next 12 months will be higher than those predicted for the next five years.
Aon says wholesale funds have, in the 12 months to March 31, continued to generate high returns. It says the average return for this period has been in the vicinity of 11 per cent gross (7.5 per cent net).
The returns compare very favourably with cash returns of around 7 per cent gross and inflation of -0.1 per cent.
While international shares have produced a strong return in the past 12 months (MSCI up 17.2 per cent), only two managers actually earned more than the benchmark.
The average return was only 8.9 per cent and the range of returns was wide from -2.7 per cent for Spicers to 20.8 per cent for Armstrong Jones.
Commenting is closed
|
|
News Bites
Latest Comments
Subscribe Now
Previous News
-
Friday, September 20th, 8:29AM
How well are ethical managers managing their strategies?
-
Wednesday, September 18th, 10:22AM
[GRTV] Perpetual Guardians growth plans
-
Tuesday, September 17th, 5:16AM
Fund managers ask for a pause in auditing of climate reports
-
Friday, September 13th, 9:02AM
AMP moves ANZ money to BlackRock
-
Friday, September 13th, 7:21AM
Financial advisers urged to approach AI adoption with caution, FMA report says
-
Thursday, September 12th, 6:00AM
[GRTV] New FAP regime creates opportunities for advisers
-
Thursday, September 12th, 5:40AM
Turning 10: A Look Back at the Origin Story of Brokers, Plus How IPOs, Equities, and Self-Directed Investing are Tracking
-
Friday, September 6th, 9:00AM
Nikko abandons Ark
MORE NEWS»
Most Commented On
Mortgage Rates Table
Full Rates Table | Compare Rates
Lender |
Flt |
1yr |
2yr |
3yr |
AIA - Back My Build |
5.94 |
- |
- |
- |
AIA - Go Home Loans |
8.49 |
▼6.35 |
▼5.79 |
5.79 |
ANZ |
8.39 |
6.95 |
6.39 |
6.39 |
ANZ Blueprint to Build |
7.39 |
- |
- |
- |
ANZ Good Energy |
- |
- |
- |
1.00 |
ANZ Special |
- |
6.35 |
5.79 |
5.79 |
ASB Bank |
8.39 |
▼6.35 |
▼5.79 |
5.79 |
ASB Better Homes Top Up |
- |
- |
- |
1.00 |
Avanti Finance |
8.90 |
- |
- |
- |
Basecorp Finance |
9.60 |
- |
- |
- |
BNZ - Classic |
- |
▼6.29 |
▼5.79 |
5.79 |
Lender |
Flt |
1yr |
2yr |
3yr |
BNZ - Mortgage One |
8.44 |
- |
- |
- |
BNZ - Rapid Repay |
8.44 |
- |
- |
- |
BNZ - Std |
8.44 |
6.45 |
5.89 |
5.79 |
BNZ - TotalMoney |
8.44 |
- |
- |
- |
CFML 321 Loans |
6.70 |
- |
- |
- |
CFML Home Loans |
6.95 |
- |
- |
- |
CFML Prime Loans |
8.75 |
- |
- |
- |
CFML Standard Loans |
9.70 |
- |
- |
- |
China Construction Bank |
- |
7.09 |
6.75 |
6.49 |
China Construction Bank Special |
- |
- |
- |
- |
Co-operative Bank - First Home Special |
- |
▼6.15 |
- |
- |
Lender |
Flt |
1yr |
2yr |
3yr |
Co-operative Bank - Owner Occ |
8.15 |
▼6.35 |
▼5.79 |
▼5.69 |
Co-operative Bank - Standard |
8.15 |
▼6.85 |
▼6.29 |
▼6.19 |
Credit Union Auckland |
7.70 |
- |
- |
- |
First Credit Union Special |
- |
6.75 |
6.35 |
- |
First Credit Union Standard |
8.50 |
7.35 |
6.95 |
- |
Heartland Bank - Online |
7.99 |
6.69 |
6.35 |
6.15 |
Heartland Bank - Reverse Mortgage |
- |
- |
- |
- |
Heretaunga Building Society |
8.90 |
7.00 |
6.50 |
- |
ICBC |
7.85 |
6.45 |
5.99 |
5.89 |
Kainga Ora |
8.39 |
7.05 |
6.59 |
6.49 |
Kainga Ora - First Home Buyer Special |
- |
- |
- |
- |
Lender |
Flt |
1yr |
2yr |
3yr |
Kiwibank |
8.25 |
▼7.19 |
▼6.69 |
▼6.59 |
Kiwibank - Offset |
8.25 |
- |
- |
- |
Kiwibank Special |
- |
▼6.29 |
▼5.79 |
▼5.79 |
Liberty |
8.59 |
8.69 |
8.79 |
8.94 |
Nelson Building Society |
8.75 |
6.85 |
6.39 |
- |
Pepper Money Advantage |
10.49 |
- |
- |
- |
Pepper Money Easy |
8.69 |
- |
- |
- |
Pepper Money Essential |
8.29 |
- |
- |
- |
SBS Bank |
8.49 |
7.19 |
6.49 |
6.49 |
SBS Bank Special |
- |
6.59 |
5.89 |
5.89 |
SBS Construction lending for FHB |
- |
- |
- |
- |
Lender |
Flt |
1yr |
2yr |
3yr |
SBS FirstHome Combo |
5.94 |
5.59 |
- |
- |
SBS FirstHome Combo |
- |
- |
- |
- |
SBS Unwind reverse equity |
9.95 |
- |
- |
- |
TSB Bank |
9.19 |
7.25 |
6.79 |
6.69 |
TSB Special |
8.39 |
6.45 |
5.99 |
5.89 |
Unity |
8.64 |
▼6.45 |
▼5.89 |
- |
Unity First Home Buyer special |
- |
6.20 |
- |
- |
Wairarapa Building Society |
8.50 |
6.65 |
5.99 |
- |
Westpac |
8.39 |
▼6.89 |
▼6.39 |
▼6.39 |
Westpac Choices Everyday |
8.49 |
- |
- |
- |
Westpac Offset |
8.39 |
- |
- |
- |
Lender |
Flt |
1yr |
2yr |
3yr |
Westpac Special |
- |
▼6.29 |
▼5.79 |
▼5.79 |
Median |
8.44 |
6.62 |
6.29 |
5.89 |
Last updated: 20 September 2024 9:10am |
|
|