Wholesale Managed Funds Performance - March 2019

Published on
May 15, 2019
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Wholesale Managed Funds Performance - March 2019

The Australian Unity Retail Property Fund and Fidelity China Fund were the highest performing wholesale managed funds in the three years to March 2019, with after-fee returns of 25.1% p.a. and 20.1% p.a. respectively.

Rainmaker Information has just released its latest managedfunds investment report for the three year period to 31 March2019.

International equities was the top performing asset sector,achieving median returns after fees of more than 13% p.a. Large capdiversified global equities slightly edged emerging marketsinternational equities by a small margin however.

The Australian equities asset sector was close behind withmedian returns for the sector of 11.2% p.a. for large capAustralian equities and 9.9% p.a. for small cap managed funds.

In last place was the international fixed interest bond sectorwith median returns of 3.4% pa. In second last place was theAustralian fixed interest sector with median returns of 4.1%pa.

The sector median was outperformed by the relevant index in eachof the below strategies except for international fixed income(Bloomberg Barclays Global Agg Hedged with 3.2%) and combinedproperty (the S&P ASX200 A-REIT Index matched the sectormedian with 9.9%).

Rainmaker Wholesale Managed Funds Performance - March 2019

Rainmaker's head of investment research, John Dyall, said"the last three years has been a fascinating period forequities markets, both internationally and in Australia. Theheadline numbers can hide a lot of important information frominvestors."

"Where you are invested and your managed fund'scurrency position has had a large effect on your returns. Currencyhas added a lot to the international equities returns if you areunhedged, while Australian resource stocks have eclipsed returnsfrom industrials," explained Dyall.

As a result, Dyall cautioned investors to look behind theheadline investmentreturn figures because consistency of investment returns isjust as important. Plus investors should be careful to invest intomanaged funds with clear investment objectives that they arecommitted to.

"While headline returns are a key measurement of successfor managed funds, consistency of returns and the ability of a fundto match its performance to its stated investment objective arealso crucial factors when comparing funds."

Sector Top performing product Three year performance Sector median
Growth1 MLC Horizon 7 Accelerated Growth Portfolio 14.1% 9.3%
Balanced1 BlackRock Scientific Diversified Growth Fund 10.2% 7.5%
Capital Stable1 IOOF MultiMix Moderate Trust 7.7% 5.3%
Australian Equities Large Cap Dimensional Australia Value Trust 11.9% 11.2%
Australian Equities Small Cap Pendal MicroCap Opportunities Fund 17.2% 9.9%
International Equities Large Cap T. Rowe Price Global Equity Fund 19.1% 13.7%
International Equities Emerging Markets Fidelity China Fund 20.1% 13.6%
Combined Property Australian Unity Retail Property Fund 25.1% 9.9%
Australian Fixed Income Yarra Income Plus Fund 5.1% 4.1%
International Fixed Income Andrea Real Outcome Fund 5.7% 3.4%
High Yield Credit Bentham High Yield Fund 8.6% 4.8%
Source: Rainmaker Information Wholesale Managed Funds Report Vol. 21 No. 03

1 Growth funds have more than 75% of their assets ingrowth assets such as equities and property, balanced funds havebetween 55% and 75% and capital stable funds have less than55%.

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