2011 Managed Funds Reports

Top Performing Managed Funds to June 2011

On this page:

  • Introduction
  • Changes to AIA Well Performed Funds Table
  • What to look for when selecting managed funds
  • Managed Fund Selection
  • How the Information is Presented
  • Managed Funds Fact Sheets & Tables
  • Funds in Australian Large Cap Categories
  • Funds in Australian Mid/Small Categories
  • Funds in Bonds, Hedge Funds Categories
  • Funds in Australian Real Estate Categories
  • Funds in World Categories
  • Funds in Regional Categories
  • Disclaimer

Related Links :

  • 2010 Managed Investments Project
  • 2009 Managed Investments Project
  • 2008 Managed Investments Project
  • 2007 Managed Investments Project

 Introduction

For the fifth year we have compiled a summary of results for the top performing managed funds in pre-selected Morningstar categories. In total we list 72 managed funds and include fact sheets for each. You can also access six spreadsheets comparing funds of the same category.
                           
There have been some changes to the funds featured and 16 funds included last year have been removed and ten new funds added to this year’s list. This table (insert URL) shows the listing.

Acknowledgement:
This report has been completed with many hours’ work undertaken by Bob Hartley, an AIA member in Brisbane. The AIA greatly appreciates Bob’s contribution to this project.

 

Because of the very large number of managed funds available to investors there was a need to be selective with the funds to be included in the study. We have focused on fact sheets in the following categories1:

  • Australian equities large caps (blend, growth, value,)
  • Australian equities medium-small caps (blend, growth, value)
  • World large caps (blend, growth, value) & mid-small caps(blend, growth value)
  • Regional (Asia ex-Japan, Japan, North America, emerging markets)
  • Australian bonds, hedge funds (Australia, global)
  • Australian real estate.

Funds included in the study were selected on the basis of their 5-year performance and ability to invest directly in the fund for no more than $100,000. The majority, however, have a minimum investment of $50,000 or less.

In keeping with AIA’s status, no investment recommendations are made, nor judgment made about any particular aspect of a fund. Only information has been supplied.

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What to look for when selecting managed funds

A group of AIA members (Brisbane Managed Investments Group BMIG) have identified seven factors to consider when evaluating a managed fund2.

These features/aspects were:

  • Costs - entry/exit, MERs, buy/sell spreads, performance fees
  • Investment process – the philosophy, methodology and style of investing
  • People – the capacities, experience and reputation of those involved in the investment process and responsible for the fund’s investment decisions
  • Performance – fund size and inflows, cumulative returns, annual returns, volatility
  • Administration service – timeliness and accuracy of the services provided by the manager or administrator
  • Economic situation and financial markets – supportiveness of the economy and markets for investing in the sector, region and/or asset class
  • Professional research data availability – Morningstar, Standard & Poors etc.

Another criterion is the split between income and growth – high income suggests that the fund has engaged in a trading strategy which may mean there is a high tax liability to the unit holder on distributions received. These splits are reflected in the fact sheets.

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Managed fund selection

Due to the large number of funds available to investors there was a need to be selective with the funds to be included in the study. Managed funds to be included were selected on the basis of (but not exclusively) the following criteria:

  • 1, 3 and 5-year performance as at 30.6.20113.
  • Minimum investment at most $100,000.
  • Ability to invest directly in the fund.

The requirement for a five-year history excluded several funds which performed well over shorter periods.

Sources of Data

The prime source of data was information supplied available on Morningstar’s website. Other sources of data include the ASX website and information from fund managers.

Performance Indices

Each managed fund Fact Sheet uses two separate indices as reference points for the fund performance.

The cumulative returns are compared to the Fund’s nominated benchmark index. This allows the reader to make a judgment about how well the fund has performed against its own internally established performance objectives. This information is presented in the table to the left of the bar chart.

The annual financial returns are compared to the ASX 200 Accumulation Index2. This was nominated as a suitable “absolute performance” benchmark for all managed funds in the study. Our rationale is that Australian investors, who are exposed to Australian costs and currency, mostly invest in Australian equities and regard this as an important benchmark for them. However it is also useful in other ways: having the same curve on all graphs gives immediate graphical display of the scaling of the vertical axis of a particular graph; for international funds, the degree of correlation between the fund and the All Ordinaries, which may be desired to be low to reduce volatility, can be easily considered.

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How the Managed Funds Tables & Fact Sheets are presented

The structure and layout of this information is shown in Figure 1.

 

Figure 1. Report Layout

 

 

Australian Equity Funds

Australian Equity Funds are further categorised, using the Morningstar classification protocols as shown in Figures 2 and 3. Numbers in the boxes show the number of funds in each category for which Fact Sheets have been produced.

Figure 2. Australian Equity Funds Included in the Study

  

 

 

Figure 3. Australian Property and Bonds included in the Study

 

 

World Equity Funds

The World Equity Funds for which Fact Sheets have been produced are also categorised using the Morningstar classification protocols as shown in Figure 4.

Figure 4. World Equity Funds Included in the Study

 

 

The Tables

Key statistics and performances of the managed funds are summarised in six tables. Each of the tables contains the following Information:

  • APIR Code
  • Fund Name
  • Morningstar category
  • Minimum Initial Investment
  • Fund Size to either 30 June 2011
  • 1 year, 3 year and 5 year returns
  • Annual Returns to 30 June for the last five years where data is available. Figures in green indicate the fund performed better than the ASX 200 Accumulative Index. Figures in red indicate the fund performed worse than the ASX 200 Accumulative Index.

Managed Fund Fact Sheets

Key information about each fund is presented on the “Fact Sheets” and includes:

  • Title, APIR and Morningstar Identification Codes
  • Fund Manager and a link to its website
  • Objectives
  • Size4
  • Minimum Investment
  • Fees
  • Fund Performance
  • Income and growth breakdowns for the 1, 3 and 5 year returns
  • A bar chart showing the annual performance of the fund for the last five years compared to the ASX 200 Accumulation Index

Although the fact sheets for Information presented on some fact sheets will be more scant than others. Where information is missing, particularly for the income and growth breakdowns, information was not provided by the fund manager. For further information, use the hyperlink to move to the fund’s website.

Please note the fact sheets for the respective funds are not yet available and will be posted shortly.

 

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Managed Funds Fact Sheets & Tables

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Table 1: Funds in Australian Large-Cap Categories

View all the funds selected for Australian Large-Cap Categories

We feature 16 large cap managed funds. Twelve funds from 2010 have been removed and two – the Macquarie High Conviction Fund and the Perpetual Wholesale Ethical SRI Fund – have made the list for the first time.

Large-Cap Managed Funds
Category
Aviva Investors Prof Elite Opportunities Fund
Aust Large Blend
Aviva Investors Prof High Growth Shares
Aust Large Blend
Celeste Australian Equity Fund
Aust Large Blend
Celeste Concentrated Fund
Aust Large Blend
EQT Flagship Fund (Common Fund No.2)
Aust Large Blend
Goldman Sachs Australian Equities Wholesale
Aust Large Blend
Prime Value Growth Fund
Aust Large Blend
Schroder W Australian Equity Fund
Aust Large Blend
UBS Australian Share Fund
Aust Large Blend
Hyperion Australian Growth Companies Fund
Aust Large Growth
ING Wholesale Select Leaders Trust
Aust Large Growth
Macquarie High Conviction Fund
Aust Large Growth
Perpetual Wholesale Australian Fund
Aust Large Value
Perpetual Wholesale Concentrated Equity Fund
Aust Large Value
Perpetual Wholesale Ethical SRI Fund
Aust Large Value
Perpetual Wholesale Share Plus Long-Short Fund
Aust Large Value

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Table 2: Funds in Australian Mid-Small Categories

View all the funds selected for Australian Mid-Small Categories

Only one fund featured in 2010 has been removed and with an additional five – Nova Premier Smaller Companies Fund, Pre Select Australian Small Companies Fund, CFS Wholesale  Developing Companies Fund; SGH ICE and Perpetual Wholesale Smaller Companies Fund  - meeting the criteria this table includes 22 small cap managed funds.

Mid-Small Managed Funds
Category
Aust Unity Acorn Capital Ws Microcap Trust
Aust Mid/Small Blend
BT Wholesale MicroCap Opportunities Fund
Aust Mid/Small Blend
BT Wholesale - Smaller Companies  Fund
Aust Mid/Small Blend
NovaPort Wholesale Smaller Companies Fund
Aust Mid/Small Blend
Eley Griffiths Group Small Companies Fund
Aust Mid/Small Blend
ING Wholesale Emerging Companies Trust
Aust Mid/Small Blend
Ironbark Karara Australian Small Companies Fund
Aust Mid/Small Blend
NovaPort Premier Smaller Companies Fund
Aust Mid/Small Blend
Pengana Emerging Companies Fund
Aust Mid/Small Blend
Pre Select Australian Small Companies
Aust Mid/Small Blend
UBS Australian Small Companies Fund
Aust Mid/Small Blend
Ausbil Australian Emerging Leaders Fund
Aust Mid/Small Growth
Australian Ethical Smaller Companies Trust
Aust Mid/Small Growth
Aviva Investors Prof Small Companies Fund
Aust Mid/Small Growth
CFS Wholesale Developing Companies
Aust Mid/Small Growth
Hyperion Small Growth Companies Fund
Aust Mid/Small Growth
Macquarie Master - Small Companies Fund
Aust Mid/Small Growth
SGH ICE
Aust Mid/Small Growth
Wilson HTM Priority Growth Fund
Aust Mid/Small Growth
Ganes Focused Value Fund
Aust Mid/Small Value
Perennial Value Smaller Companies Trust
Aust Mid/Small Value
Perpetual Wholesale Smaller Companies Fund
Aust Mid/Small Value

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Table 3: Funds in Bonds, Hedge Funds Categories

View all the funds selected for Bonds, Hedge Funds Categories

All funds featured last year remain with the addition of the Winton Global Alpha Fund and the Global Pure Alpha Fund 'A' Class Units. In total fact sheets are included for twelve funds.

Bonds, Hedge Funds Managed Funds
Category
PIMCO EQT Wholesale Australian Bond Fund
Bonds - Australia
Aberdeen Income Focused Bond
Bonds - Australia
Perennial Australian Fixed Interest Trust
Bonds - Australia
Perennial Fixed Interest Wholesale
Bonds - Australia
UBS Australian Bond Fund
Bonds - Australia
Aviva Investors Long/Short Equity Fund
Hedge Funds - Australia
K2 Australian Absolute Return Fund
Hedge Funds - Australia
HFA International Shares HR units
Hedge Funds - Global
Winton Global Alpha Fund
Hedge Funds - Global
Select Alternatives Portfolio
Hedge Funds - Global
Global Pure Alpha Fund 'A' Class Units
Hedge Funds - Global
Macquarie Special Events Fund
Miscellaneous

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Table 4: Funds in Australian Real Estate Categories

View all the funds selected for Australian Real Estate Categories

The five funds featured last year remain unchanged.

Australian Real Estate Managed Funds
Category
Aviva Investors Prof Listed Property
Aust Real Estate
BT Wholesale - Property Securities Fund
Aust Real Estate
ING Wholesale Property Securities Trust
Aust Real Estate
The Property Income Plus Fund
Aust Real Estate
Zurich Investments Aust Property Securities Fund
Aust Real Estate

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Table 5: Funds in World Categories

View all the funds selected for World Categories

We feature 7 funds in this category. 6  funds from 2010 have been removed

World Managed Funds
Category
Macquarie Sharemarket Fund - International Share
World Large Blend
Platinum International Brands Fund
World Large Blend
Platinum International Fund
World Large Value
BlackRock WS Global Small Cap Fund
World Mid/Small Blend
Fiducian Global Smaller Cos & Emerging Markets
World Mid/Small Blend
Hunter Hall Value Growth Trust
World Mid/Small Blend
CFS Wholesale Global Resources
World - Other

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Table 6: Funds in Regional Categories

View all the funds selected for Regional Categories

All funds featured last year remain with the addition of the Schroder Asia Pacific Fund and the Macquarie BRIC Adv Fund Hedged.

Regional Managed Funds
Category
Aberdeen Asian Opportunities Fund
Equity Asia w/o Japan
BT Wholesale - Asian Share Fund
Equity Asia w/o Japan
Challenger Wholesale Asian Share Fund
Equity Asia w/o Japan
K2 Asian Absolute Return Fund
Equity Asia w/o Japan
Maple-Brown Abbott Asian Investment Trust
Equity Asia w/o Japan
Platinum Asia Fund
Equity Asia w/o Japan
Schroder Asia Pacific Fund
Equity Asia w/o Japan
Aberdeen Emerging Opportunities Fund
Equity Emerging Markets
ING Wholesale-ING Global Emerging Markets
Equity Emerging Markets
Macquarie BRIC Adv Fund Hedged
Emerging Markets
Platinum Japan Fund
Equity Japan

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Disclaimer

This Disclaimer is made for the purposes of the Corporations Act 2001 as amended by the Financial Services Reform Act 2001 ("the Acts").

The Australian Investors Association

The Australian Investors Association Ltd ABN 75 052 411 999 ("AIA") is a non-profit association that aims to assist investors become more knowledgeable and independent. In furthering its aims the AIA offers general information through its publications. The AIA has no Australian Financial Services Licence ("AFSL") under Part 7 of the Corporations Act 2001 as amended.

Does not contravene the Acts

The AIA, its officers, agents, representatives, and employees do not hold an AFSL and do not purport to give advice or operate in any way in contravention of the Acts. The AIA, its officers, agents, representatives, and employees exclude all liability whatsoever, in negligence or otherwise, for any loss or damage relating to this publication to the full extent permitted by law. The AIA has a policy which does not permit the endorsement or recommendation of any product or service regulated by the Acts.

Provides information only

This report has been prepared for information purposes only without consideration of any reader's specific investment objectives, personal financial situations or needs. Because of this, no reader should rely upon the information and/or recommendations contained in this document. Readers should, before acting on any information contained herein, consider the appropriateness of the information, having regard to their objectives, financial situation and needs.

The AIA believes that the material contained in this report is based on information from sources that are considered reliable and is accurate when issued. However, the AIA does not warrant its accuracy or reliability. All views and information expressed by the AIA, its officers, agents, representatives, and employees are for the purposes of discussion only.

If any information relates to the acquisition, or possible acquisition, of a particular financial product, the reader should obtain a product disclosure statement relating to the product and consider that statement, and should consider taking advice from a licensed person before making any decision about whether to acquire the product.

 

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  1. Morningstar Categories as defined in the Morningstar Rating Methodology™ have been used as a basis for the classifying funds in the study
  2. For more information refer AIA Managed Investments Bulletin January 2007
  3. Source of data Morningstar Website
  4. Fund Size data on the Fact Sheets was sourced from the Morningstar website