Find out which managers have been performing well
Sunday, October 29th 2000, 10:15PM
- The local share market lost ground, down 1.3%, with business confidence declining.
- Overseas share markets also lost ground, down 2.5% in local currency terms.
- Local and overseas fixed interest markets provided moderate performances, each returning 1.9%.
- The continued NZ$ weakness, reaching lows unmatched against the US$ since the currency was floated in 1985.
- The CPI rose 1.4%, the largest movement since 1990, raising the spectre of inflation.
- The average gross return for the fund managers surveyed was 3.3% for the quarter.
Do Managers add value?< br> A review of the sector results for all the time periods illustrated shows that with one exception, the managers on average have added value. Where managers have not added value has been tactical asset allocation decisions. We add one cautionary note to these comments which is known as survivorship bias, namely that consistently poor performing managers do not survive.
Manager results for the last 12 months
- AMP Henderson Global Investors- Their tax effective fund structure and effective benchmark, with high exposure to overseas shares, continues to deliver top quartile absolute performance. Their local share performance adds value but trails other managers, partly due to the fund being exposed only to NZ shares.
- Arcus Investment Management - Their good value added in the NZ shares sector is partly due to their exposure to Australia. The fund overall continues to add good value.
- Armstrong Jones - While their relative performance slipped, they continue to add value particularly in overseas fixed interest, (assisted by their 50% exposure to currency), property and with their asset allocation decisions.
- ANZ Asset Management - They add value in all sectors except overseas fixed interest. Their absolute performance suffered from low currency exposure, raising questions about the efficiency of their benchmark.
- AXA - Their results are starting to be consistently above average. Problems remain with their property pool.
- BNZ Investment Management - Their poor performance in overseas fixed interest combined with their heavy weighting in this sector detract from their otherwise good ability to add value.
- BT Funds Management - Their top ranking for the 12 month period combined with their bottom ranking for the quarter suggest their results are volatile.
- Colonial First State - The good value added in their 3 asset sectors is being lost as a consequence of their asset allocation decisions and low exposure to currency.
- GRT - Their absolute results are better than their value added results, suggesting an effective benchmark asset allocation. GRT is an independent not-for-profit superannuation trust offering specialist investment management to scheme trustees.
- Guardian Trust Funds Management - Their relative results are continuing to slip back with only local fixed interest, property and cash producing above average results in the last quarter. Their local share performance while average is particularly good when it is considered that they only invest in NZ shares.
- NZ Funds Management - Their total performance is well above average.
- Tower Asset Management - While they added good value for the quarter, they remain bottom for the year. Their low exposure to currency has dragged down their absolute performance.
- WestpacTrust Investment Management - Their good performance in overseas shares and fixed interest was dragged down by the value lost in their asset allocation decisions.
|
Total Fund (after fees and tax) |
||||||||
|
Manager |
3 Months |
1 Year |
3 Yrs |
5 Yrs |
||||
|
AHGI |
3.0 |
(2) |
13.2 |
(3) |
8.8 |
(2) |
9.2 |
(4) |
|
AIM |
1.7 |
(13) |
12.6 |
(4) |
8.4 |
(4) |
n.a |
|
|
AJ |
2.2 |
(7) |
10.3 |
(10) |
8.2 |
(6) |
9.5 |
(2) |
|
ANZAM |
1.8 |
(11) |
8.9 |
(12) |
6.6 |
(11) |
8.3 |
(8) |
|
AXA |
2.6 |
(4) |
12.0 |
(6) |
6.4 |
(13) |
8.0 |
(10) |
|
BNZIM |
3.0 |
(1) |
12.2 |
(5) |
9.0 |
(1) |
10.0 |
(1) |
|
BTFM |
2.0 |
(9) |
14.6 |
(1) |
7.4 |
(8) |
9.2 |
(5) |
|
CFS |
2.9 |
(3) |
10.9 |
(8) |
6.7 |
(10) |
n.a |
|
|
GRT |
2.3 |
(5) |
10.9 |
(7) |
8.6 |
(3) |
8.9 |
(7) |
|
GTFM |
2.1 |
(8) |
9.5 |
(11) |
8.0 |
(7) |
9.1 |
(6) |
|
NZFM |
1.9 |
(10) |
13.5 |
(2) |
8.3 |
(5) |
9.4 |
(3) |
|
TAM |
1.7 |
(12) |
7.5 |
(13) |
6.5 |
(12) |
8.0 |
(9) |
|
WIM |
2.3 |
(6) |
10.6 |
(9) |
7.0 |
(9) |
7.3 |
(11) |
|
Average |
2.3 |
11.3 |
7.7 |
8.8 |
||||
|
Index |
1.2 |
4.2 |
4.8 |
6.5 |
||||
Notes: 1. The index return for the total fund is the average of the benchmark returns of the managers.
2. AJ, AXA and GTFM provided their net returns on a pre-fees basis. A net fee of 24 basis points was assumed.
3. AIM, ANZAM, GRT and NZFM were unable to supply net figures. Fees of 24 b.p and tax at 33% was assumed.
4. The average is the arithmetic mean of all the managers results.
- Active share returns only are shown for AHGI (AMP), ANZAM, AXA and BNZIM.
- AIM and CFS New Zealand share returns include exposure to Australian shares.
- All returns are per annum except those for the 3 month period.
Table 2: Value Added
|
Total Fund |
Asset Allocation |
|||||||||||||||||
|
Manager |
3 Months |
1 Year |
3 Yrs |
5 Yrs |
Manager |
3 Months |
1 Year |
3 Yrs |
5 Yrs |
|||||||||
|
AHGI |
-0.6 |
(11) |
-1.6 |
(11) |
-1.7 |
(11) |
-0.8 |
(7) |
AHGI |
-0.1 |
(5) |
-0.2 |
(6) |
-0.5 |
(7) |
-0.3 |
(6) |
|
|
AIM |
0.2 |
(5) |
5.4 |
(3) |
2.0 |
(3) |
n.a |
AIM |
n.a |
n.a |
n.a |
n.a |
||||||
|
AJ |
1.4 |
(1) |
4.3 |
(4) |
3.0 |
(1) |
3.0 |
(1) |
AJ |
0.2 |
(2) |
0.5 |
(2) |
0.3 |
(3) |
0.7 |
(1) |
|
|
ANZAM |
1.1 |
(2) |
2.6 |
(6) |
1.1 |
(5) |
1.3 |
(3) |
ANZAM |
0 |
(3) |
0.4 |
(3) |
0.7 |
(1) |
0.5 |
(2) |
|
|
AXA |
-0.1 |
(9) |
2.7 |
(5) |
0.1 |
(7) |
0.5 |
(4) |
AXA |
-0.1 |
(5) |
0.2 |
(5) |
0.2 |
(4) |
0.3 |
(3) |
|
|
BNZIM |
0.0 |
(8) |
-0.6 |
(10) |
-0.7 |
(8) |
-0.3 |
(6) |
BNZIM |
0 |
(3) |
0.3 |
(4) |
0.7 |
(1) |
0.3 |
(3) |
|
|
BTFM |
-1.1 |
(12) |
9.1 |
(1) |
2.1 |
(2) |
n.a |
BTFM |
0.4 |
(1) |
2.2 |
(1) |
0.1 |
(5) |
n.a |
|||
|
CFS |
0.2 |
(6) |
-0.3 |
(9) |
-3.5 |
(12) |
n.a |
CFS |
-0.7 |
(10) |
-2.6 |
(10) |
-3.4 |
(10) |
n.a |
|||
|
GRT |
-0.5 |
(10) |
1.7 |
(7) |
0.9 |
(6) |
0.5 |
(5) |
GRT |
n.a |
n.a |
n.a |
n.a |
|||||
|
GTFM |
n.a |
n.a |
n.a |
n.a |
GTFM |
n.a |
n.a |
n.a |
n.a |
|||||||||
|
NZFM |
0.6 |
(3) |
8.8 |
(2) |
1.6 |
(4) |
2.0 |
(2) |
NZFM |
n.a |
n.a |
n.a |
n.a |
|||||
|
TAM |
0.4 |
(4) |
-1.7 |
(12) |
-1.5 |
(10) |
-1.0 |
(8) |
TAM |
-0.2 |
(8) |
-1.3 |
(9) |
-0.5 |
(7) |
-0.3 |
(6) |
|
|
WIM |
0.0 |
(7) |
0.3 |
(8) |
-1.0 |
(9) |
-1.8 |
(9) |
WIM |
-0.3 |
(9) |
-1.1 |
(8) |
-0.8 |
(9) |
-1.0 |
(8) |
|
|
Average |
0.1 |
2.5 |
0.2 |
0.4 |
Average |
-0.1 |
(5) |
-0.2 |
(6) |
-0.3 |
(6) |
0.0 |
(5) |
|||||
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.
|
Funds involved in the survey |
|
|
Manager |
Fund |
|
AMP Henderson Global Investors |
Superannuation Balanced Unit |
|
Armstrong Jones |
SIL Balanced Fund |
|
Arcus Investment Management |
Balanced Value Fund |
|
ANZAM |
Balanced Discretionary Fund |
|
AXA |
EFG Managed Fund |
|
BNZ Investment Management |
FLP Balanced Growth Fund |
|
BT Funds Management |
BTNZIS Balanced Fund |
|
Colonial First State |
Asset Growth Fund |
|
Guardian Trust Funds Management |
Composite Fund |
|
GRT |
Balanced Fund |
|
New Zealand Funds Management |
Low-Medium Growth Portfolio |
|
Royal & SunAlliance |
Superannuation Managed Fund |
|
Spicers Portfolio Management |
|
|
Tower Asset Management |
ILS Fund |
|
WestpacTrust Investment Management |
WestpacTrust Diversified Fund |
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