Dairy Industry Superannuation Scheme

Transcription

1 Dairy Industry Superannuation Scheme Performance Summary (Gross of Fees) 1 Mo Fiscal YTD Dairy Industry Superannuation Scheme DISS Composite Excess Return Fund Performance Your aggregate Scheme return was 0.9% for November, 0.1% above its benchmark. The Scheme has returned 12.8% over the past twelve months, 1.4% above its benchmark. All Investment Options performed broadly in line with their respective benchmarks over the month. Markets The majority of investment markets delivered positive returns again in November. The US market led the way, boosted by the prospect of the Trump Administration s tax bill making it into law by Christmas. In contrast, Europe, the UK and Emerging Markets lagged other markets. The MSCI World Index performed well, up +1.6% (in local currency terms). The NZ dollar continued to fall against the euro, pound and yen, raising the unhedged return to +2.0%. NZ equities underperformed other developed markets, returning +0.6%. Domestic bond yields fell, helping NZ Government Bonds return +0.8%. Global Government Bonds were weaker but still positive, returning +0.3%. Global Listed Property and Infrastructure both performed well, returning +2.4% and +1.3% respectively. Manager Performance Mercer Natural Resources (+1.0%), AMP Emerging Market Equities (+0.4%), AMP Global Listed Property (+0.3%) and AMP Global Equities (+0.3%) outperformed their respective benchmarks over the month. In contrast, Mercer Listed Infrastructure (-1.5%) underperformed its benchmark over the month. Your remaining managers performed broadly in line with their respective benchmarks. Asset Allocation Your sector allocations at the end of the month were within their prescribed asset allocation ranges. The overall allocation to growth assets was 52.2% versus a target of 50.3% at month end. Dairy Industry Superannuation Scheme 1

2 Strategic Asset Allocation vs. Current SAA SAA Range SAA Current % Difference* % Within Range Trans-Tasman Equities ,100,949 92,434, ,333, Yes Global Equities ,165, ,511, ,345, Yes Global Listed Property ,103,211 30,673, ,430, Yes Global Listed Infrastructure _ ,516,071 31,055, , Yes Natural Resources ,516,071 28,927, ,588, Yes New Zealand Bonds ,514,940 53,020, ,494, Yes Global Bonds ,254, ,975, ,279, Yes New Zealand Cash ,609, ,182, ,572, Yes Total ,781, ,781, *Difference between SAA and Current Allocation XXXXX Excess Performance vs Summary 1 Mo Perf vs Fiscal YTD Perf vs Perf vs Perf vs Dairy Industry Superannuation Scheme DISS Investment Options Cash % Cash & 50% Conservative Conservative % Conservative & 50% Balanced Balanced % Balanced & 50% Growth Growth Trans-Tasman Equities Global Equities Global Listed Property Global Listed Infrastructure Natural Resources New Zealand Bonds Global Bonds New Zealand Cash Dairy Industry Superannuation Scheme 2

3 Manager and Asset Class Performance (Gross of Fees) Market Value % of Portfolio 1 Mo Fiscal YTD Dairy Industry Superannuation Scheme 755,781, DISS Composite Excess Return DISS Investment Options Cash 65,821, DISS Cash Excess Return % Cash & 50% Conservative 36,493, DISS 50% Cash & 50% Conservative Excess Return Conservative 46,083, DISS Conservative Excess Return % Conservative & 50% Balanced 117,895, DISS 50% Conservative & 50% Balanced Excess Return Balanced 252,669, DISS Balanced Excess Return % Balanced & 50% Growth 153,807, DISS 50% Balanced & 50% Growth Excess Return Growth 83,009, DISS Growth Excess Return Trans-Tasman Equities 92,434, Excess Return Harbour 66,249, Excess Return ANZ Core Fund # 26,184, Excess Return Global Equities 211,511, DISS Global Equity Composite Excess Return AMP Global Equities (Unhedged) 79,751, MSCI World NZD Excess Return AMP Global Equities (Hedged) 105,264, MSCI World - Net Div Index (139% NZD Hedged) Excess Return AMP Emerging Markets 26,495, MSCI Emerging Markets Index Excess Return Dairy Industry Superannuation Scheme 3

4 Market Value % of Portfolio 1 Mo Fiscal YTD Global Listed Property 30,673, FTSE EPRA/NAREIT Developed Index (NZD-H) from 1 Jan 2017, Developed Rental Index prior Excess Return AMP Global Listed Property 30,673, FTSE EPRA/NAREIT Developed Index (NZD-H) from 1 Jan 2017, Developed Rental Index prior Excess Return Global Listed Infrastructure 31,055, FTSE 50/50 Infrastructure & Utilities Index (100% NZD Hedged after-tax) Excess Return Mercer Listed Infrastructure 31,055, FTSE 50/50 Infrastructure & Utilities Index (100% NZD Hedged after-tax) Excess Return Natural Resources 28,927, Natural Resources Composite Excess Return Mercer Natural Resources 28,927, Natural Resources Composite Excess Return New Zealand Bonds 53,020, Excess Return AMP NZ Fixed Interest 26,724, Excess Return ANZ Fixed Interest 26,296, Excess Return Global Bonds 139,975, Excess Return IIS Global Fixed Interest 101,704, Excess Return AMP Short Duration Global Bonds 38,270, Excess Return New Zealand Cash 168,182, Excess Return AMP NZ Cash 84,177, Excess Return ANZ Cash 84,004, Excess Return Dairy Industry Superannuation Scheme 4

5 - All performance figures are shown before deduction of fees and taxes. - Financial Year ends 31 March. - The currency hedge ratio for Global Equities was 49.8% at month end. - AMP Short Duration investment was funded on 27 February #The Scheme moved from ANZ Equity Selection Fund to the Core Fund in late August Performance in the table is for the Core Fund only, measured against the NZX50 index with Imputation Credits. Investment Market Commentary The MSCI World Index performed well, up +1.6% (in local currency terms). The NZ dollar continued to fall against the euro, pound and yen, raising the unhedged return to +2.0%. NZ equities underperformed when compared with other developed markets, returning +0.6%. Domestic bond yields fell, helping NZ Government Bonds return +0.8%. Global Government Bonds were weaker, returning +0.3%. Global Listed Property and Infrastructure both performed well, returning +2.4% and +1.3% respectively. Trans-Tasman Equities: The New Zealand market eased off in November, with the NZX50 Index returning a more modest +0.6% for the month, the lowest monthly return for the index this calendar year. Previous drivers of NZX growth A2 Milk, Spark and Xero all had negative returns in November, contributing to the weaker return. In Australia, the ASX200 Index continued its resurgence, delivering a +1.6% return for the month. Global Equities: The MSCI World index (in local currency) returned +1.6% for the month. Positive business sentiment and earnings growth continues to support equity markets, with most major markets now experiencing sustained economic growth. Emerging market equities, up +37.2% in NZD terms over the past year, lagged developed markets in November, returning +0.0%. Property and Infrastructure: Global Listed Property had its best month since February, returning +2.4%, and outperforming Global Listed Infrastructure (1.3%). Both real asset sectors remain well behind the broader global equity market over 12 months. Infrastructure has performed better over the 12 month period due to improved inflation expectations and improving commodity prices. NZ Bonds and Cash: New Zealand Bonds had another good month in November, with Government Bonds returning +0.8% and New Zealand Corporate Bonds up +0.5%. The Reserve Bank kept interest rates on hold during the month, leaving the Official Cash Rate (OCR) at 1.75%. The NZ 10 year bond yield fell 0.17% to 2.76%. NZ Cash has delivered +2.0% over the past 12 months, lagging NZ Bonds (+4.4%). Global Bonds: Global Aggregate Bonds (+0.2%) and Global Sovereign bonds (+0.3%) both posted modest returns for the month. The 10 year US Treasury Bill yield rose to 2.42% by the end of November, up 0.04% on the previous month. The UK and South Korea both raised their respective central bank interest rates for the first time in several years and the US Fed is expected to raise its rate again in mid-december. Currency: The NZ dollar continued to fall against the Euro (-2.1%), British pound (-1.7%) and Japanese yen (-1.3%), but stabilised against the US dollar (+0.2%) and strengthened against the Australian dollar (+1.2%). On a trade-weighted basis, the NZ dollar fell -0.7%. Mercer (N.Z.) Limited All services provided in this report are delivered strictly on the basis of advice to a wholesale client in terms of the Financial Advisers Act Information on investment management firms contained herein has been obtained from the firms themselves and other sources. While this information is believed to be reliable, no representations or warranties are made as to the accuracy of the information presented, and no responsibility or liability, including for consequential or incidental damages, can be accepted for any error, omission or inaccuracy in this report or related materials. Opinions on investment products contained herein are not intended to convey any guarantees as to the future investment performance of these products. In addition, past performance cannot be relied on as a guide to future performance.