Managed Investments Project Update - June 2008

This is an update of the Managed Investments Project Report produced by the Australian Investors Association Ltd. The first report was produced for the AIA National Conference in July 2007 and made available to members soon after the conference. That edition was based on fund returns to 30 April 2007.

This second edition is based on returns to the end of June 2008.

Much has happened in the period since the end of June as global financial markets have continued to fall and global economies looked more recessionary than earlier in the year. But our focus on 5-year returns means that we are featuring in this report managed investments with long track records.

Producing this report was initially a project of the Brisbane Managed Investments Group (AIA). This group has been meeting for over four years to exchange information about the wide variety of managed investments that are of interest to serious investors. Over that period consideration has been given to equities funds (Australian and international), property security funds, ASX listed managed investments, installment warrants, rural managed funds and so on.

Late in 2006 it was decided that the group undertake a project aimed at presenting to the 2007 AIA National Conference, a report on some well performed wholesale managed funds – Australian equities and international equities. Some criteria were agreed: 5-year performance, up to $100,000 minimum investment, accessible to investors directly. It was further agreed to make use of the Morningstar categories of funds.

This meant that some funds were included which, though the best over five years in their category, had nevertheless quite poor returns.