Emerging Markets and Asian Funds darlings of 99

Managed funds investing in emerging markets and Asia dominated the top performers in 1999, according to research house Morningstar. Find out which were the 10 best and 10 worst funds of 1999.

Sunday, January 23rd 2000, 12:00AM

Managed funds investing in emerging markets and Asia dominated the top performers in 1999, according to research house Morningstar.

The top performer for the 12 months to December 31, was the Sovereign Super Far East Fund, which achieved a 102.97 percent total return. Funds investing in Asia performed well overall, providing five of the 10 top unit trusts and group investment funds over the year, and four of the top 10 superannuation trusts over the quarter.

The New Zealand Funds Management Global Emerging Markets Fund, with a 67.63 percent total return, came in second for the year. In all, emerging markets funds accounted for seven of the ten top unit trusts and group investment funds and four of the ten top superannuation trusts by total return for the 1999 year. Over the quarter, four of the ten top unit trusts and group investment funds, and three of the ten top superannuation trusts, were emerging markets funds.

UNIT TRUSTS AND GROUP INVESTMENT FUNDS

The top-performing unit trust for the December 1999 quarter was the HCM Global Technology Fund, which returned 48.60 percent, and which achieved 79.41 percent total return for the nine months the fund has been open to investors. (In a rollercoaster ride for HCM Global, the HCM Global Asset Fund was one place away from the wooden spoon award for lowest performer for the quarter and year, producing total returns of –7.04 percent and –15.25 percent respectively.)

The spread of quarterly total returns among the ten top unit trusts and group investment funds ranged from the HCM Global Technology Fund’s 48.60 percent, to 18.60 percent for the Armstrong Jones Asia Pacific Share Fund.

The spread of annual total returns for the top 10 unit trusts and group investment funds ranged from 67.63 percent for the highest-performing New Zealand Funds Management Global Emerging Markets Fund, to 36.81 percent for the ASB Emerging Markets Shares Trust.

Only one of the 10 top unit trusts and group investments funds was not invested in emerging markets or Asia – the New Zealand Guardian Small Companies Fund, which returned a 27.80 percent total return for the quarter, and a 52.10 percent total return for the year.

All 10 top unit trusts or group investment funds over either the December 1999 quarter or year were actively-managed funds.

Thirteen of the 198 unit trusts and group investment funds on offer produced negative returns for the December 1999 quarter, while 31 negative returns were posted for the December 1999 year. New Zealand and international fixed interest and property funds dominated the lowest-performing unit trusts and group investment funds. The lowest quarterly total return was produced by the WestpacTrust Diversified Property Trust (-7.96 percent), while the Direct International Equity Trust produced the lowest annual total return (-53.58 percent).

The average net asset size for the ten top unit trusts and group investment funds for the quarter was $10.47 million (well below the $15 million generally recognised as being cost-effective for a managed fund). Seven of the ten top unit trusts and group investment funds had $10.78 million or fewer net assets. (However, most of these funds invest into a much larger global investment pool.)

International equity trusts produced the highest average return among unit trusts and group investment funds over both the December 1999 quarter and year (13.16 percent and 20.89 percent respectively, as measured by the Morningstar International Equity Trusts – General (NZ) Index), followed closely by New Zealand equity trusts, whose average returns were 11.10 percent for the quarter and 14.69 percent for the year.

The lowest average performers over the December 1999 year were international fixed interest trusts. The Morningstar International Fixed Interest Trusts (NZ) Index, which measures the performance of New Zealand international fixed interest trusts, returned –0.88 percent for the year to 31 December 1999, and –0.05 percent over the December 1999 quarter.

SUPERANNUATION TRUSTS

The Sovereign Super Far East Fund was the top-performing New Zealand superannuation trust over the December 1999 year, with a 102.97 percent total return, and the second-highest-performing superannuation trust over the quarter (32.26 percent total return).

The Armstrong Jones SIL 60s+ International Share Fund was the only internationally diversified equity fund to make the ten top superannuation trusts for the December 1999 quarter or year. The Fund made an 18.57 percent total return for the quarter, and a 25.89 percent annual total return.

The spread of top ten quarterly total returns for superannuation trusts ranged from 33.33 percent for the top-performing Tower FreedomPlan – Asia/Emerging Markets Fund, to 18.57 percent for the tenth-highest Armstrong Jones SIL 60s+ International Share Fund.

Four of the top ten superannuation trusts by annual total returns to 31 December 1999 were Royal & SunAlliance funds: the Royal & SunAlliance Superplan2000 Far East Fund (53.43 percent total return); the Royal & SunAlliance Superplan Far East Fund (52.81 percent total return); the Royal & SunAlliance Superplan2000 Emerging Markets Fund (40.14 percent total return); and the Royal & SunAlliance Superplan Emerging Markets Fund (39.43 percent total return). (However, these funds operate from the same underlying pool of investment monies.)

Twenty-two of the 229 retail superannuation trusts on offer produced negative returns over the December 1999 year, while 12 superannuation trusts posted negative quarterly returns. Echoing the trend for unit trusts and group investment funds, fixed interest and property funds accounted for many of the lowest-performing superannuation trusts. The lowest quarterly return was produced by the New Zealand Funds Managment Retirement Foundation – International Bond (-1.08 percent total return), while the Sovereign Super International Fixed Interest Fund produced the lowest annual return (–6.71 percent total return).

As with unit trusts and group investment funds, the top ten superannuation trusts over the December 1999 quarter and year were generally very small by net asset size. The average net asset size was $2.91 million, the spread ranging from $7.16 million to $0.91 million.

TOP 10 RETAIL UNIT TRUSTS & GROUP INVESTMENT FUNDS TOTAL RETURNS FOR YEAR ENDING 31 DECEMBER 1999
1	New Zealand Funds Management Global Emerging Markets	67.63
2	Tower Spotlight Emerging Europe Fund	62.07
3	BTNZ Investment Selection - Pacific Basin	54.84
4	National Bank Emerging Markets Trust	54.52
5	Dresdner RCM Masterpiece - Eastern Fund	52.20
6	New Zealand Guardian Trust Small Companies Fund	52.10
7	Tower Spotlight Asia Fund	51.27
8	WestpacTrust Emerging Opportunities	50.95
9	AMP Unit Trust Asian Shares Fund	48.81
10	ASB Emerging Markets Shares Trust	36.81

TOP 10 RETAIL SUPERANNUATION TRUSTS TOTAL RETURNS FOR YEAR ENDING 31 DECEMBER 1999
1	Sovereign Super Far East Fund	102.97
2	Sovereign Super International Special Opportunities	61.65
3	BT Lifetime Plan - Pacific Basin Share	58.67
4	Tower FreedomPlan - Asia/Emerging Markets	56.19
5	Royal & SunAlliance Superplan2000 Far East Fund	53.43
6	Royal & SunAlliance Superplan Far East Fund	52.81
7	AMP Personal Retirement Plan - Asian Shares Fund	44.90
8	Royal & SunAlliance Superplan2000 Emerging Markets	40.14
9	Royal & SunAlliance Superplan Emerging Markets Fund	39.43
10	Armstrong Jones SIL 60s+ Pacific Basin Share Fund	37.74

LOWEST 10 RETAIL UNIT TRUSTS & GROUP INVESTMENT FUNDS TOTAL RETURNS FOR YEAR ENDING 31 DECEMBER 1999
1	Direct International Equity Trust	-53.58
2	HCM Global Asset Fund	-15.25
3	WestpacTrust Diversified Property Trust	-7.91
4	Spectrum Plus Global Bond Trust	-5.77
5	National Bank Property Trust	-5.63
6	Dresdner RCM Masterpiece - World Bond Fund	-5.58
7	New Zealand Funds Management Global Hedged Bond	-4.80
8	FCMI Toronto New Zealand Equity Trust	-3.62
9	New Zealand Guardian Trust Global Bond	-3.58
10	Spectrum Plus Unit Trusts New Zealand Cash Trust	-2.86

LOWEST 10 RETAIL SUPERANNUATION TRUSTS TOTAL RETURNS FOR YEAR ENDING 31 DECEMBER 1999
1	Sovereign Super International Fixed Interest Fund	-6.71
2	Royal & SunAlliance Superplan Global Bond Fund	-6.34
3	Royal & SunAlliance Superplan2000 Global Bond Fund	-6.24
4	New Zealand Funds Management Retirement Foundation – International Bond	-4.63
5	Royal & SunAlliance Superplan Property Fund	-4.58
6	Royal & SunAlliance Superplan2000 Property Fund	-4.01
7	Royal & SunAlliance New Zealand Property Fund	-3.82
8	Metropolitan Life Classic-Income	-2.74
9	AMP Personal Retirement Plan – New Zealand Property	-2.55
10	Royal & SunAlliance International Fixed Interest	-1.50

All returns are to December 31, 1999 and are net of tax and fees.

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Emerging Markets and Asian Funds darlings of 99

Managed funds investing in emerging markets and Asia dominated the top performers in 1999, according to research house Morningstar. Find out which were the 10 best and 10 worst funds of 1999.

Sunday, January 23rd 2000, 12:00AM

Commenting is closed