Master trusts: good returns continue
Actuary Jonathan Eriksen says even through the past quarter has been very volatile master funds still continue to produce good returns for investors.
Sunday, May 7th 2000, 12:00AM
The funds surveyed increased by $60 million over the quarter. The amount invested in conservative funds grew by almost $80 million whereas funds invested in balanced funds actually fell by $30 million and growth funds only grew by 10 million. Obviously some investors in New Zealand master trusts are also concerned about the risks of investing in the US or global stock markets and prefer to reduce their risk.
AXA have launched a new master trust product (click here for details) which is competitive against the market leaders. Having had an outdated expensive product for some years it is good to see them competing again.
The acquisition by Royal Sun Alliance of Tyndall Australia has meant that the Guardian Trust investment management team has effectively taken over the investment management responsibilities for the combined group in New Zealand.
Whilst many local investment managers consider the New Zealand stock market undervalued they don’t appreciate that most offshore investors are not interested in what are now second tier organisations in terms of the global economy. Even a merger of the Australian and New Zealand stock markets would not change that position.
One way of observing this lack of interest is to note that US investors invested $NZ16 billon in the Polish economy last year. That is almost twice our current account deficit.
The Government Actuary has suggested that superannuation schemes risk being deregistered if less than 85 per cent of the benefits are paid out in retirement benefits, (a view strongly opposed by the industry).
The concern is largely unnecessary as the draft legislation limits employees use of the salary sacrifice method of protecting income over $60,000 at the 33 per cent tax rate using a superannuation scheme. To qualify for tax-free withdrawal the funds must be kept in until the member leaves service. Members also cannot increase contributions by more than 50 per cent within two years of leaving service.
|
Fund Name
|
Fund Size $ mill |
Annual Returns (net of tax & expenses) |
||||
|
1 Year |
2 Year |
3 Year |
4 Year |
5 Year |
||
|
Growth Funds |
||||||
|
Colonial International Equities |
1.1 |
29.5 |
15.6 |
15.7 |
12.7 |
13.6 |
|
Jacques Martin Growth Fund |
14.6 |
16.6 |
13.5 |
14.1 |
11.9 |
11.8 |
|
Colonial Special Values |
2.4 |
15.5 |
8.2 |
10.4 |
9.7 |
10.0 |
|
AMP High Equity |
79.9 |
15.2 |
13.2 |
15.6 |
13.0 |
12.4 |
|
GRT Individual Retirement Plan Growth |
7.7 |
13.3 |
10.4 |
13.2 |
10.9 |
10.6 |
|
Tower Focus International Shares |
14.1 |
13.1 |
7.0 |
13.9 |
12.1 |
13.2 |
|
Tower BT Managed Growth |
1.0 |
11.4 |
8.6 |
9.0 |
8.9 |
9.4 |
|
Tower BNZ Dynamic Growth |
0.2 |
10.7 |
6.1 |
|
|
|
|
WestpacTrust Dynamic |
200.8 |
10.0 |
7.9 |
9.9 |
8.2 |
8.0 |
|
Jacques Martin Asset Growth |
39.5 |
8.3 |
7.4 |
|
|
|
|
Tower ANZ Growth |
0.5 |
7.8 |
4.4 |
|
|
|
|
Tower Focus NZ Shares |
3.4 |
5.5 |
4.7 |
5.7 |
6.7 |
8.3 |
|
Colonial Australasian Equities |
0.2 |
-1.2 |
1.5 |
3.6 |
3.8 |
4.2 |
|
All Growth Funds |
365.3 |
11.4 |
9.2 |
11.7 |
9.8 |
9.6 |
|
|
|
|
|
|
|
|
|
Balanced Funds |
||||||
|
AXA NZ Spread Managers |
65.0 |
12.7 |
6.6 |
9.3 |
8.9 |
8.2 |
|
Colonial Balanced Growth |
11.2 |
12.1 |
7.7 |
8.6 |
8.1 |
8.7 |
|
AMP BT |
21.6 |
10.4 |
7.9 |
8.2 |
8.2 |
8.8 |
|
Armstrong Jones SIL Balanced |
348.4 |
9.4 |
9.0 |
11.1 |
10.3 |
10.6 |
|
AMP Balanced |
367.5 |
8.7 |
8.6 |
10.4 |
9.1 |
9.0 |
|
GRT Indivdl Retirement Plan Balanced |
14.7 |
8.4 |
8.1 |
10.1 |
8.8 |
8.6 |
|
Royal & Sun Alliance Managed Fund |
91.1 |
7.8 |
7.4 |
8.9 |
7.9 |
8.2 |
|
AXA NZ Managed |
32.0 |
7.6 |
4.6 |
7.8 |
8.2 |
7.5 |
|
WestpacTrust Balanced |
351.2 |
7.5 |
6.8 |
8.0 |
6.8 |
6.8 |
|
Tower BNZ Balanced Growth |
0.8 |
7.1 |
4.4 |
|
|
|
|
Jacques Martin Balanced |
5.7 |
6.6 |
8.0 |
8.5 |
8.0 |
8.0 |
|
Tower Investment Linked |
63.4 |
5.6 |
5.5 |
8.4 |
8.2 |
8.6 |
|
AXA NZ Balanced |
28.7 |
5.4 |
4.4 |
7.0 |
7.5 |
7.1 |
|
Tower ANZ Market Balanced |
0.1 |
4.8 |
3.0 |
|
|
|
|
AMP ANZ Balanced |
62.0 |
4.6 |
5.8 |
7.4 |
7.5 |
8.2 |
|
All Balanced Funds |
1,463.4 |
8.3 |
7.6 |
9.5 |
8.6 |
8.6 |
|
|
|
|
|
|
|
|
|
Conservative Funds |
||||||
|
Jacques Martin Capital Stable |
42.5 |
6.6 |
7.4 |
7.4 |
7.0 |
6.9 |
|
GRT Individual Retirement Plan Stable |
2.4 |
5.0 |
6.4 |
7.7 |
7.1 |
7.0 |
|
AXA NZ Low Risk |
24.5 |
4.7 |
4.3 |
6.6 |
6.9 |
7.0 |
|
AMP Capital Stable |
48.8 |
4.7 |
5.7 |
6.6 |
6.3 |
6.5 |
|
AMP Capital Assured |
38.2 |
4.6 |
4.9 |
5.0 |
4.9 |
4.5 |
|
Colonial Conservative |
2.0 |
4.3 |
4.0 |
4.9 |
4.5 |
4.6 |
|
AXA NZ Capital Protected |
27.1 |
3.8 |
4.2 |
4.1 |
4.3 |
4.5 |
|
Colonial Global Fixed Interest |
0.3 |
3.6 |
4.0 |
5.8 |
5.7 |
5.8 |
|
Royal & Sun Alliance Deposit Fund |
29.8 |
3.4 |
4.0 |
4.3 |
4.7 |
5.0 |
|
Jacques Martin Cash Management |
89.4 |
3.3 |
3.4 |
4.1 |
4.5 |
|
|
Tower Focus Cash |
3.2 |
3.0 |
3.6 |
3.9 |
4.5 |
4.8 |
|
WestpacTrust Accumulation |
55.7 |
2.4 |
3.8 |
4.3 |
4.6 |
4.7 |
|
Tower ANZ Capital Stable |
0.3 |
1.8 |
|
|
|
|
|
Tower BNZ Conservative |
|
1.4 |
0.9 |
|
|
|
|
Tower Focus Fixed Income |
4.5 |
0.7 |
4.8 |
5.4 |
5.5 |
5.4 |
|
All Conservative Funds |
368.7 |
4.0 |
4.6 |
5.2 |
5.3 |
5.6 |
|
Total Funds |
2,197.4 |
8.1 |
7.4 |
9.1 |
8.2 |
8.4 |
|
Cash Benchmark (Net) |
|
3.5 |
3.8 |
4.3 |
4.8 |
5.1 |
|
CPI |
|
1.5 |
0.7 |
0.9 |
1.1 |
1.3 |
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