Do managers add value?
Consulting actuaries Melville Jessup Weaver give their report card on fund manager performance up to March 31.
Monday, May 1st 2000, 12:00AM
Do Managers add value?
The last year has seen the average manager add substantial value in the local and overseas shares sectors. In contrast nil value on average was added through tactical asset allocation decisions, the range of results varied from +1.6 per cent to -1.5 per cent. (see Table One, Value Added and Table Two, Value Added Asset Allocation)
Manager results for the last 12 months
- Arcus Investment Management - (Formerly Spicers). Its balanced fund added 5.5 per cent for the 1 year period, compared to benchmark. They added significant value in both share sectors. The results shown for the overseas shares include the performance of Putnams since June 1999 although the balanced fund continued to be invested with Morgan Stanley.
- Armstrong Jones - They continue to produce good top quartile results. In addition to good sector performance, they also add value with their tactical asset allocation decisions.
- AMPAM - While their relative position has slipped, their overall results confirm they are a consistent average performing manager.
- ANZAM - Their results are on the downward slide, with poor results for both share sectors and fixed interest sectors. As expected their passive asset allocation stance sees them continuing to add value in this area.
- AXA - Their relative 1 year position has slipped slightly in the last quarter. Given their level of resources in this sector their local share performance continues to disappoint.
- Bank of New Zealand Investment Management - While their five year result on a net basis sees them second out of 8 managers their individual gross sector results lag the average manager in the last year.
- BT Funds Management - Their results continue to improve principally on the back of their performance in both share sectors. A weakness was their performance in the property sector.
- Colonial First State - While their results have improved marginally, they still continue to produce below average performance. The success of their Australian parent has yet to permeate through to New Zealand.
- Guardian Trust Funds Management - Their performance has slipped in the last year. Their strong local shares performance has partly offset their poor overseas shares result.
- NZ Funds Management - The combination of an extraordinary 40 per cent return on local shares against an index return of 2.9 per cent and a benchmark with 70 per cent in growth assets saw them add over 13 per cent to their benchmark.
- Royal and SunAlliance - They are beginning to establish themselves as an above average manager achieving a respectable fifth ranking for the year on their total gross return. The performance of their overseas managers was particularly good.
- Tower Asset Management - While their quarterly ranking improved they still remained bottom overall ranking for their 1 year result. The major contribution has been the return from their overseas share managers. Their best performing sector is direct property.
- WestpacTrust Investment Management - Their results are clearly improving, with quarterly results for all domestic sectors either average or above average.
|
Manager |
3 Months |
1 Year |
3 Yrs |
5 Yrs |
||||
|
AIM |
2.4 |
(2) |
5.5 |
(3) |
0.4 |
(3) |
n.a |
|
|
AJ |
0.3 |
(5) |
4.6 |
(4) |
3.5 |
(1) |
3.2 |
(1) |
|
AMPAM |
-0.9 |
(10) |
-1.5 |
(11) |
-1.2 |
(9) |
-0.5 |
(6) |
|
ANZAM |
-1.0 |
(12) |
-0.3 |
(7) |
-0.8 |
(7) |
0.9 |
(2) |
|
AXA |
-0.8 |
(9) |
2.4 |
(6) |
0.0 |
(6) |
0.7 |
(3) |
|
BNZIM |
-0.3 |
(6) |
-0.7 |
(9) |
-1.1 |
(8) |
-0.4 |
(5) |
|
BTFM |
1.2 |
(3) |
8.2 |
(2) |
0.2 |
(4) |
n.a |
|
|
CFS |
-0.9 |
(11) |
-1.2 |
(10) |
-5.5 |
(12) |
n.a |
|
|
GTFM |
n.a |
|
n.a |
|
n.a |
|
n.a |
|
|
NZFM |
5.8 |
(1) |
13.2 |
(1) |
2.0 |
(2) |
n.a |
|
|
RSA |
0.5 |
(4) |
3.4 |
(5) |
0.1 |
(5) |
0.2 |
(4) |
|
TAM |
-0.4 |
(7) |
-2.5 |
(12) |
-2.1 |
(11) |
-0.9 |
(7) |
|
WIM |
-0.7 |
(8) |
-0.3 |
(8) |
-1.4 |
(10) |
-1.8 |
(8) |
|
Average |
0.4 |
|
2.6 |
|
-0.5 |
|
0.2 |
|
|
Manager |
3 Months |
1 Year |
3 Yrs |
5 Yrs |
||||
|
AIM |
-0.2 |
(7) |
-0.4 |
(9) |
-1.2 |
(11) |
n.a |
|
|
AJ |
0.0 |
(3) |
0.5 |
(2) |
0.7 |
(2) |
0.6 |
(1) |
|
AMPAM |
-0.6 |
(11) |
-0.3 |
(7) |
-0.5 |
(6) |
-0.3 |
(5) |
|
ANZAM |
0.1 |
(2) |
0.4 |
(3) |
0.9 |
(1) |
0.6 |
(2) |
|
AXA |
-0.3 |
(9) |
0.2 |
(5) |
0.3 |
(4) |
0.5 |
(3) |
|
BNZIM |
-0.1 |
(5) |
0.4 |
(4) |
0.6 |
(3) |
0.3 |
(4) |
|
BTFM |
-0.7 |
(12) |
1.6 |
(1) |
0.1 |
(5) |
n.a |
|
|
CFS |
-0.3 |
(8) |
-1.5 |
(12) |
-3.6 |
(12) |
n.a |
|
|
GTFM |
n.a |
|
n.a |
|
n.a |
|
n.a |
|
|
NZFM |
-0.1 |
(4) |
0.1 |
(6) |
-0.8 |
(8) |
n.a |
|
|
RSA |
0.1 |
(1) |
-0.3 |
(8) |
-0.8 |
(9) |
-0.6 |
(7) |
|
TAM |
-0.2 |
(6) |
-1.3 |
(11) |
-0.7 |
(7) |
-0.3 |
(6) |
|
WIM |
-0.6 |
(10) |
-0.9 |
(10) |
-1.1 |
(10) |
-0.9 |
(8) |
|
Average |
-0.2 |
|
-0.1 |
|
-0.5 |
|
0.0 |
|
Notes: 1. The value added by a manager is shown for both the individual asset sectors and for tactical asset allocation decisions.
2. No figures are shown for GTFM as no benchmark asset allocations are available.
3. The asset allocation figures are the difference between the value added in total and that added for stock selection.
4. All returns are per annum except those for the 3 month period.
|
The survey analyses the managers discretionary funds shown below. |
|
|
Manager |
Fund |
|
AIM |
Balanced Value Fund |
|
AJ |
SIL Balanced Fund |
|
AMPAM |
Superannuation Balanced Unit |
|
ANZAM |
Balanced Discretionary Fund |
|
AXA |
EFG Managed Fund |
|
BNZIM |
FLP Balanced Growth Fund |
|
BTFM |
BTNZIS Balanced Fund |
|
CFS |
Asset Growth Fund |
|
GTFM |
Composite Fund |
|
NZFM |
Medium Growth Portfolio |
|
RSA |
Superannuation Managed Fund |
|
TAM |
ILS Fund |
|
WIM |
WestpacTrust Diversified Trust |
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