Pre Select quarterly update

Transcription

1 Pre Select quarterly update June Pre Select and Access Pre Select Fund Performance as at 30 June , 2 Pre Select Funds 3 mths 1 yr 3 yrs p.a. 5 yrs p.a. Pre Select Conservative Fund Conservative Survey Median (Wholesale) Pre Select Balanced Fund Moderate Growth Survey Median (Wholesale) Pre Select Growth Fund Balanced Growth Survey Median (Wholesale) Pre Select High Growth Fund High Growth Survey Median (Wholesale) Pre Select Australian Equities Fund Australian Equity Survey Median (Wholesale) Pre Select Australian Small Companies Australian Small Company Survey Median (Wholesale) Pre Select International Equities Fund International Equity Survey Median (Wholesale) Pre Select Funds 3 mths 1 yr 3 yrs p.a. Access Pre Select Conservative Conservative Survey Median (Retail) Access Pre Select Balanced Moderate Growth Survey Median (Retail) Access Pre Select Growth Balanced Growth Survey Median (Retail) Access Pre Select High Growth High Growth Survey Median (Retail) Access Pre Select Australian Equities Australian Equity Survey Median (Retail) Access Pre Select Australian Small Companies Australian Small Company Survey Median (Retail) Access Pre Select International Equities International Equity Survey Median (Retail) yrs p.a. 1. Total returns shown have been calculated using exit prices after taking into account the responsible entity s ongoing fees and assumes reinvestment of income. Past performance should not be taken as an indication for future performance. 2. The median manager returns have been obtained from the Mercer Wholesale Multi-Sector Survey and the Median Retail Multi-Sector Survey.

2 Overall Performance The June 2010 quarter performance was a challenging one for markets in general. The Pre Select portfolios generally performed well with the Australian equities portfolio again being the primary contributor to outperformance. The International Equities option performance was disappointing when measured against the peer performance for the quarter with the AXA Value and AXA Growth allocations being the key detractors. Within the Australian shares portfolio, the three large cap managers each added to the performance with Perpetual and Aviva Investors being the two largest contributors to the overall Australian equity outperformance. The diversified funds are consistently outperforming the median manager over the 3 and 5 year periods. Australian Equities With a return after fees of -10.3%, the Australian equities portfolio outperformed the index return -11.2% and the median manager return -11.4% over the three months to end June The performance of the option over the twelve months to 30 June 2010 has also been pleasing with good performance from both large and small cap managers. The overall Australian shares portfolio outperformed both the median and benchmark over the year to June Both Perpetual and Aviva strongly outperformed the benchmark over the year while BGI marginally underperformed in market conditions unfavourable to quantitative style investing. Performance of the option for the twelve months to 30 June 2010, on a post fee basis was 15.3%, which was 2.25% over the index. International Equities Pre Select s international portfolio returned -8.1% after fees which was 0.26% below the composite 50/50 MSCI World Hedged/Unhedged index for the June 2010 quarter. The AXA Bernstein Value Equities and Alliance Growth Equities both underperformed the index for the quarter. Bernstein Value Equities indicated that with the aftershocks of recession and tighter credit still taking a toll, investors remain sceptical about the durability of the earnings recovery and, thus, are more wary of making wagers on the cycle s eventual winners and losers than they would be under more stable conditions. Alliance Growth Equities indicated it believes that the economic data slowed during the quarter and underlying economies remain challenged. Against this they expect it to be difficult for many companies to sustain an upside earnings surprise or indeed show that their earnings are commensurate with the elevation in their stock prices. Performance of the option for the twelve months to 30 June 2010 on post fee basis was 8.8%, which was 0.84% below the composite 50/50 MSCI World Hedged/ Unhedged index. Remaining sectors Of the remaining sectors, Australian listed property securities, and Australian and overseas fixed interest are managed according to a passive or enhanced passive approach and performed to expectations. Global property The global property securities sector is actively managed by Perennial Investment Partners. Perennial marginally underperformed by 0.34% over the quarter, on a pre fee basis. 2

3 2. Pre Select specialist managers as at 30 June 2010 Strategic Allocation Style Australian equities BlackRock Scientific Australian Shares 31% Active Core Aviva Investors Australian Shares 31% Active GARP Perpetual Australian Shares 31% Active Value Pre Select Australian Small Companies Fund 7% Multi Manager Australian small companies Adam Smith Small Companies 50% Active Value Aviva Investors Australian Small Companies 50% Active Core International equities Vanguard International Shares Index Fund (hedged) 30% Index BlackRock Global Equity Enhanced Index Fund (unhedged) 20% Enhanced Index Capital International Global Equities Fund (Hedged) 20% Active Core AXA Wholesale Global Equity Growth Fund 15% Active Growth AXA Wholesale Global Equity Value Fund 15% Active Value Australian listed property Colonial First State (W) Indexed Property Securities Fund 100% Index Global listed property Perennial Global Property Securities Trust 100% Active Core Australian fixed interest Macquarie Enhanced Australian Fixed Interest Fund 100% Enhanced Index International fixed interest Macquarie Index Tracking Global Bond Fund 100% Index Cash Aviva Investors 100% Active 3

4 3. Top 10 overweight and underweight positions as at 30 June 2010 Australian equities The two tables below outline the most overweight stocks as 30 June 2010 and their respective sectors as well as the most underweight stocks Top 10 Overweight Positions COAL & ALLIED INDUSTRIES LIMITED 1.65% 0.00% 1.65% INSURANCE AUSTRALIA GROUP LIMITED 1.79% 0.68% 1.10% NEW HOPE CORPORATION LIMITED 0.96% 0.00% 0.96% ASCIANO GROUP 1.39% 0.46% 0.93% CAMPBELL BROTHERS LIMITED 0.84% 0.00% 0.84% PREMIER INVESTMENTS 0.82% 0.05% 0.77% RIO TINTO 3.57% 2.81% 0.75% REECE AUSTRALIA LIMITED 0.75% 0.00% 0.75% ILUKA RESOURCES 0.93% 0.19% 0.74% NEWS CORP 1.41% 0.67% 0.74% Top 10 Underweight Positions MACQUARIE GROUP LIMITED 0.06% 1.24% -1.18% QBE INSURANCE GROUP LIMITED 0.73% 1.82% -1.09% NEWCREST MINING LIMITED 0.68% 1.65% -0.97% WOOLWORTHS 2.30% 3.25% -0.94% SANTOS LIMITED 0.10% 1.01% -0.92% COMMONWEALTH BANK OF AUSTRALIA 6.49% 7.31% -0.81% AMP LIMITED 0.27% 1.05% -0.77% STOCKLAND 0.22% 0.86% -0.64% AGL ENERGY LIMITED 0.00% 0.63% -0.63% CSL LIMITED 1.19% 1.82% -0.62% Active stock bets relative to the index are spread across a large number of stocks as opposed to being concentrated in just a few stocks. Broadly, active stock positions are within +/-3%. 4

5 International equities The two tables below outline the most overweight stocks as 30 June 2010 and their respective sectors as well as the most underweight stocks Top 10 Overweight Positions RIO TINTO PLC 0.77% 0.33% 0.45% ALTRIA GP. 0.64% 0.21% 0.43% PROCTER AND GAMBLE CO 1.30% 0.89% 0.41% TIME WARNER CABLE INC 0.46% 0.09% 0.36% SOFTBANK CORPORATION 0.46% 0.11% 0.35% JUNIPER NETWORKS INC 0.41% 0.06% 0.35% NINTENDO CO 0.48% 0.15% 0.33% GOLDMAN SACHS GROUP INC. (THE) 0.65% 0.33% 0.33% XSTRATA PLC 0.46% 0.14% 0.32% VISA INCORPORATED CLASS A SHARES 0.48% 0.17% 0.31% Top 10 Underweight Positions EXXON MOBIL CORPORATION 0.80% 1.49% -0.69% BHP BILLITON LIMITED 0.21% 0.84% -0.64% ATLAS COPCO AB 0.36% 0.73% -0.37% GENERAL ELECTRIC COMPANY 0.42% 0.79% -0.37% COCA COLA COMPANY (THE) 0.19% 0.53% -0.34% COMMONWEALTH BK.OF AUS. 0.00% 0.32% -0.32% JOHNSON & JOHNSON 0.53% 0.83% -0.30% CITIGROUP INC. 0.11% 0.41% -0.30% VERIZON COMMUNICATIONS 0.11% 0.41% -0.29% WESTPAC BANKING CORP OF AUST 0.00% 0.27% -0.27% Active stock bets relative to index are spread across a large number of stocks, partly due to 50% of the portfolio being managed in an index or enhanced manner. Active stock positions are within +/- 1%. 5

6 4. Pre Select and Access Pre Select Fund summary Pre Select Fund summary APIR ICR Buy/Sell Spread FUA ($M) Pre Select Conservative NUN0001AU / Pre Select Balanced NUN0002AU / Pre Select Growth NUN0003AU / Pre Select High Growth NUN0004AU / Pre Select Australian Equity NUN0005AU / Pre Select Australian Small Companies NUN0038AU / Pre Select International Equity NUN0006AU / Access Pre Select Fund Summary APIR ICR Buy/Sell Spread FUA ($M) Access Pre Select Conservative NUN0032AU / Access Pre Select Balanced NUN0030AU / Access Pre Select Growth NUN0033AU / Access Pre Select High Growth NUN0034AU / Access Pre Select Australian Equities NUN0028AU /0/ Access Pre Select Australian Small Companies NUN0029AU / Access Pre Select International Equities NUN0035AU / More information Website: Investor Services: Issued by Navigator Australia Limited ABN , AFSL (Navigator). Navigator is the Responsible Entity of the Pre Select funds and receives fees in this capacity. Refer to the Pre Select funds product disclosure statement (PDS) for more details. Past performance is no guarantee of future performance. The Pre Select funds are only available for investment through an investor directed portfolio service, master trust or wrap account issued by Navigator or NULIS Nominees (Australia) Limited ABN , AFSL (NULIS). AV1532B The information above is of a general nature only and does not take into account your particular objectives, financial situation or needs. Before making an investment decision, you should consider the relevant PDS and whether it is appropriate for you. The above information is current as at the date of publication. While every attempt has been made to ensure the accuracy and reliability of the information, it is not guaranteed in any way. The Aviva name and logo are used under licence from Aviva plc Group. 6