MJW Investment Survey
See the results of the investment survey prepared by Melville Jessup Weaver for September 2005. The objectives of the survey are to provide a review of each manager’s performance and details of the value added by each manager, both overall and within asset classes.
Friday, October 28th 2005, 10:28AM
September quarter features- NZ shares up 6.4%, MSCI unhedged up 7.51%
- NZ Fixed Interest up 1.0%, Overseas Fixed Interest up 0.9%
- NZ dollar down marginally from 69.6 to 69.3 US cents.
Overview of 1 year results
The average balanced fund returned 11.5% for the year after tax and fees, with the results varying from a strong 14.4% for BTFM to 8.6% for TAM. The top performing sector was listed property at 22.3% gross, with NZ shares closely behind at 21.8%. Overseas unhedged shares achieved 16.5%. NZ fixed and cash produced 7.1% and 7.0% respectively and overseas fixed 10.4%.
Comments on performance over last year
ACM: Their balanced fund 3 month results look good as do the performance of their value based overseas share offering through Bernstein. They also have a high performing NZ growth share fund as opposed to the mainstream fund illustrated in the survey. But overall they have some way to go yet.
AMP Capital: Their 3 month balanced fund results have improved. A factor which has held back their results in the last year is the relative low return on their NZ based direct pool compared to the listed funds promoted by other managers. But there must be every expectation that this fund will outperform the listed vehicles in time.
The recent changes to the asset allocation with the inclusion of infrastructure and a nil NZ share passive
exposure look positive.
BAM: Their NZ share numbers are consistently good and the organisation is clearly a success. It would be good to see them stay focused on the local market.
BNZIM: Their results are not good, although the results are partly a function of a conservative asset allocation mix. The nil exposure to property has hurt their numbers. They possibly remain too exposed to passive share funds.
BTFM: On a net basis their balanced fund results are particularly good. Their NZ share team has done well since the departure of the previous team leader. Of interest are their good NZ and overseas fixed results and cash numbers.
CFS: Their net results are average for the year with their best sector NZ shares, due to the high exposure to the Australian market. This exposure should assist them over time to deliver more consistent results than a manager who is just solely NZ focused.
GRT: This is the last quarter their results will be reported as they ceased business on 30 September. Their results have been solid over the last 10 years. From 1 October 2005 GRT member scheme funds (with some exceptions) will be managed by Mercer, replicating the GRT structure utilising the same investment managers.
ING: Their SIL fund has the top net fund result for the year. On a sector basis they are also top for NZ and overseas fixed, and cash, and a strong result for property. But their NZ fixed and cash results do benefit from their tax position and the results are not solely based on their funds management expertise.
Mercer: They have done well over the last 12 months, during which time, contrary to their historical position, they have had a low effective tax rate.
TAM: They have the bottom performing net fund, due primarily to its asset allocation. The fund has lost out from having a low exposure to NZ shares and, like AMP, the return on the direct property exposure has lagged compared to the listed funds.
Tyndall: On a gross basis their managed fund did well for the last year but the impact of tax dragged down the net result. Their sector results show strong NZ shares, NZ and overseas fixed and cash results for the last 12 months.
WCM: While their 1 year result is bottom for the NZ share managers, since inception of this fund in December 2002 they have value added 6.3% pa.
Alternative asset fund results: Despite the range of the funds illustrated, the results for the last 12 months have been reasonably similar.
Value add results: Of interest and with one exception the results for all sectors and for all asset allocations show that value was added. The exception is 5 year overseas fixed. Allowing for fees, the results indicate that overall the managers do add value and (as opposed to a passive or index approach) an investor with a fund manager does have the reassurance of knowing their money is being actively managed. The comment is made in the context of the continuing high level of mistrust of fund mangers in NZ.
Value Added – Sector and Balanced Fund
|
New Zealand Shares |
|||||
|
Manager |
Aus % |
3 mth % |
1 yr % |
3 yr%. |
5 yr % |
|
ACM |
13.7 |
1.4 (2) |
2.4 (6) |
0.6 (7) |
0.8 (7) |
|
AMPCI |
0.0 |
0.9 (5) |
-1.1 (8) |
0.7 (6) |
1.2 (6) |
|
BAM |
n.a |
2.3 (1) |
3.7 (3) |
3.3 (4) |
4.2 (1) |
|
BNZIM |
0.0 |
-0.3 (10) |
-2.9 (9) |
-1.5 (9) |
-1.0 (9) |
|
BTFM |
0.0 |
0.9 (6) |
3.2 (4) |
0.5 (8) |
1.7 (5) |
|
CFS |
55.6 |
0.7 (7) |
9.0 (1) |
4.5 (2) |
0.0 (8) |
|
ING |
0.0 |
0.7 (8) |
2.4 (5) |
3.4 (3) |
2.4 (2) |
|
TAM |
0.0 |
0.4 (9) |
1.6 (7) |
2.7 (5) |
2.3 (3) |
|
TYN |
5.2 |
0.9 (4) |
4.7 (2) |
5.7 (1) |
2.0 (4) |
|
WCM |
6.3 |
1.0 (3) |
-3.2 (10) |
na |
na |
|
Average |
0.9 |
2.0 |
2.2 |
1.5 |
|
|
Overseas Shares / Currency |
|||||
|
Manager |
Hedge % |
3 mth % |
1 yr % |
3 yr%. |
5 yr % |
|
ACM |
0 |
3.1 (1) |
6.3 (1) |
5.7 (1) |
11.4 (1) |
|
AMPCI |
50 |
1.1 |
1.2 |
2.2 |
1.8 |
|
BNZIM |
0 |
-0.5 (7) |
2.0 (3) |
3.5 (3) |
7.3 (3) |
|
BTFM |
0 |
-1.1 (8) |
-0.4 (8) |
-1.1 (8) |
-0.8 (7) |
|
CFS |
50 |
-0.7 |
2.1 |
-2.9 |
1.1 |
|
DFA |
0 |
1.7 (2) |
6.2 (2) |
5.5 (2) |
10.0 (2) |
|
ING |
0 |
1 (4) |
-0.2 (7) |
-0.8 (7) |
-3.4 (8) |
|
TAM |
0 |
0.0 (5) |
0.3 (5) |
0.4 (5) |
4.4 (4) |
|
TYN |
0 |
1.1 (3) |
-0.1 (6) |
-0.1 (6) |
-0.4 (6) |
|
WEL |
0 |
-0.1 (6) |
1.6 (4)) |
0.7 (4) |
1.2 (5 |
|
Average |
0.5 |
1.9 |
1.3 |
3.2 |
|
|
Property |
|||||
|
Manager |
3 mth % |
1 yr % |
3 yr%. |
5 yr % |
|
|
ACM |
Listed |
0.4 (4) |
1.1 (4) |
1.4 (4) |
-2.3 (6) |
|
AMPCI |
Direct |
-0.6 (7) |
-0.4 (6) |
-1.1 (5) |
-0.9 (5) |
|
AMPCI |
Global |
0.0 (6) |
0.1 (5) |
Na |
na |
|
BAM |
Listed |
1.9 (1) |
2.0 (2) |
3.4 (2) |
2.2 (2) |
|
BTFM |
Listed |
1.7 (2) |
1.5 (3) |
1.8 (3) |
1.4 (3) |
|
ING |
Listed |
1.4 (3) |
6.7 (1) |
4.2 (1) |
3.2 (1) |
|
TAM |
Direct |
0.0 (5) |
-6.8 (7) |
-1.1 (6) |
-0.1 (4) |
|
TYN |
Global |
-0.7 (8) |
Na |
Na |
na |
|
Average |
0.5 |
0.6 |
1.4 |
0.6 |
|
|
NZ Fixed Interest |
||||
|
Manager |
3 mth % |
1 yr % |
3 yr%. |
5 yr % |
|
ACM |
0.1 (4) |
0.1 (5) |
0.4 (5) |
0.4 (5) |
|
AMPCI |
-0.1 (6) |
0.0 (7) |
0.5 (3) |
0.5 (4) |
|
BNZIM |
-0.1 (7) |
0.1 (4) |
0.4 (4) |
0.5 (3) |
|
BTFM |
0.2 (2) |
0.6 (2) |
0.0 (7) |
0.0 (6) |
|
ING |
0.8 (1) |
0.6 (1) |
0.9 (1) |
0.8 (2) |
|
TAM |
0.2 (3) |
0.1 (6) |
0.1 (6) |
0.0 (7) |
|
TYN |
0.0 (5) |
0.5 (3) |
0.7 (2) |
0.9 (1) |
|
Average |
0.2 |
0.3 |
0.4 |
0.4 |
|
Overseas Fixed Interest |
||||
|
Manager |
3 mth % |
1 yr % |
3 yr%. |
5 yr % |
|
ACM |
0.5 (4) |
0.4 (6) |
-1.0 (8) |
-1.1 (7) |
|
AMPCI |
0.5 (5) |
0.7 (5) |
0.2 (4) |
-0.4 (3) |
|
BNZIM |
0.3 (7) |
0.2 (7) |
-0.5 (7) |
-1.9 (8) |
|
BTFM |
1.1 (1) |
1.4 (3) |
1.0 (2) |
-0.5 (4) |
|
CFS |
0.2 (8) |
-0.5 (8) |
-0.4 (6) |
-0.9 (6) |
|
DFA |
-0.1 (9) |
-1.6 (9) |
Na |
Na |
|
ING |
0.7 (3) |
2.4 (1) |
0.0 (5) |
-0.6 (5) |
|
TAM |
0.3 (6) |
1.0 (4) |
1.2 (1) |
0.6 (1) |
|
TYN |
0.8 (2) |
1.9 (2) |
0.9 (3) |
0.1 (2) |
|
Average |
0.5 |
0.7 |
0.2 |
-0.6 |
|
Cash |
||||
|
Manager |
3 mth % |
1 yr % |
3 yr%. |
5 yr % |
|
ACM |
0.0 (5) |
0.1 (5) |
0.1 (6) |
0.2 (4) |
|
AMPCI |
0.0 (7) |
0.0 (7) |
0.2 (4) |
0.2 (5) |
|
BNZIM |
0.0 (6) |
0.1 (4) |
0.1 (5) |
0.1 (6) |
|
BTFM |
0.2 (2) |
0.7 (2) |
0.3 (3) |
0.3 (3) |
|
CFS |
-0.1 (8) |
-0.3 (8) |
-0.3 (8) |
Na |
|
ING |
0.7 (1) |
1.4 (1) |
1.0 (1) |
0.6 (1) |
|
TAM |
0.1 (4) |
0.0 (6) |
0.0 (7) |
0.0 (7) |
|
TYN |
0.1 (3) |
0.3 (3) |
0.3 (2) |
0.5 (2) |
|
Average |
0.1 |
0.3 |
0.2 |
0.3 |
|
Balanced Fund |
||||
|
Manager |
3 mth % |
1 yr % |
3 yr%. |
5 yr % |
|
ACM |
0.9 (2) |
0.9 (7) |
-0.4 (8) |
-0.9 (7) |
|
AMPCI |
0.5 (4) |
0.1 (9) |
0.2 (7) |
Na |
|
BNZIM |
-0.3 (10) |
-1.2 (10) |
-0.8 (10) |
-1.0 (8) |
|
BTFM |
0.2 (7) |
1.6 (4) |
0.6 (6) |
0.0 (5) |
|
CFS |
-0.1 (8) |
2.6 (1) |
-0.7 (9) |
0.0 (6) |
|
GRT |
0.4 (5) |
1.2 (6) |
1.4 (4) |
0.9 (3) |
|
ING |
-0.2 (9) |
2.2 (3) |
2.7 (1) |
0.2 (4) |
|
MSIT |
1.2 (1) |
2.5 (2) |
1.8 (2) |
1.3 (2) |
|
TAM |
0.4 (6) |
0.3 (8) |
1.1 (5) |
2.5 (1) |
|
TYN |
0.8 (3) |
1.4 (5) |
1.6 (3) |
Na |
|
Average |
0.4 |
1.2 |
0.8 |
0.4 |
|
Asset Allocation |
||||
|
Manager |
3 mth % |
1 yr % |
3 yr%. |
5 yr % |
|
ACM |
0.1 (6) |
-0.1 (7) |
0.0 (9) |
-0.1 (5) |
|
AMPCI |
0.1 (5) |
-0.2 (9) |
0.5 (2) |
Na |
|
BNZIM |
-0.1 (9) |
-0.2 (8) |
0.1 (6) |
0.2 (4) |
|
BTFM |
0.2 (3) |
0.4 (3) |
0.3 (4) |
-0.5 (6) |
|
CFS |
0.0 (8) |
0.0 (6) |
0.1 (8) |
0.4 (3) |
|
GRT |
Na |
Na |
Na |
Na |
|
ING |
0.4 (1) |
0.7 (1) |
1.2 (1) |
0.7 (1) |
|
MSIT |
0.3 (2) |
0.3 (4) |
0.2 (5) |
Na |
|
TAM |
0.1 (4) |
0.5 (2) |
0.4 (3) |
0.6 (2) |
|
TYN |
0.0 (7) |
0.0 (5) |
0.1 (7) |
Na |
|
Average |
0.1 |
0.2 |
0.3 |
0.2 |
Notes
1. The asset allocation figures are the difference between the value added in total and that added for stock selection.
2. The 3 yr and 5 yr percentages are annualised rates.
3. Figures in brackets are rankings for the period indicated.
Actual Asset Allocation – September 2005
|
Manager |
NZ shares |
Overseas shares |
Property |
Alt Assets |
Growth Assets |
|||
|
Active |
Passive |
Active |
Passive |
NZ |
Global |
|||
|
ACM |
6.1 |
7.5 |
16.3 |
21.1 |
7.0 |
0.0 |
0.0 |
58.0 |
|
AMPCI |
13.1 |
0.0 |
7.6 |
31.0 |
6.8 |
4.2 |
0.0 |
62.7 |
|
BNZIM |
5.6 |
12.4 |
7.6 |
22.0 |
0.0 |
0.0 |
0.0 |
47.5 |
|
BTFM |
20.5 |
0.0 |
36.4 |
0.0 |
5.1 |
0.0 |
0.0 |
62.0 |
|
CFS |
20.0 |
0.0 |
40.0 |
0.0 |
0.0 |
0.0 |
0.0 |
60.0 |
|
GRT |
13.0 |
0.0 |
11.0 |
21.0 |
4.5 |
2.0 |
0.0 |
51.5 |
|
ING |
19.8 |
0.0 |
37.5 |
0.0 |
9.6 |
0.0 |
0.0 |
66.9 |
|
MSIT |
15.4 |
0.0 |
18.2 |
18.3 |
5.0 |
1.9 |
2.0 |
60.8 |
|
TAM |
10.9 |
0.0 |
32.9 |
0.0 |
13.7 |
0.0 |
0.0 |
57.6 |
|
TYN |
15.4 |
0.0 |
37.5 |
0.0 |
0.0 |
5.1 |
7.4 |
65.4 |
|
Avg |
14.0 |
2.0 |
24.5 |
11.3 |
5.2 |
1.3 |
0.9 |
59.2 |
|
Manager |
Fixed Interest |
Cash |
Income Assets |
Currency |
||
|
NZ |
O’seas |
Alloc |
Outlook |
|||
|
ACM |
16.6 |
10.0 |
15.5 |
42.1 |
19.1 |
Neutral |
|
AMPCI |
22.6 |
9.7 |
5.0 |
37.3 |
22.6 |
Negative |
|
BNZIM |
15.7 |
35.5 |
1.3 |
52.5 |
29.4 |
Neutral |
|
BTFM |
12.0 |
16.5 |
9.5 |
38.0 |
36.4 |
Neutral |
|
CFS |
0.0 |
37.0 |
3.0 |
40.0 |
20.0 |
Neutral |
|
GRT |
16.0 |
24.0 |
8.5 |
48.5 |
10.9 |
na |
|
ING |
13.4 |
9.1 |
10.7 |
33.2 |
27.2 |
Negative |
|
MSIT |
13.6 |
20.6 |
5.0 |
39.2 |
18.2 |
Neutral |
|
TAM |
5.8 |
18.2 |
18.4 |
42.4 |
24.9 |
Negative |
|
TYN |
21.7 |
8.2 |
4.7 |
34.6 |
18.7 |
Neutral |
|
Avg |
13.8 « Inflation set to affect savings | Market Review: History repeating? » | | |||
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