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Local or global? Long or short? Once again we look to the numbers and ask: How did our Australian equity managers stack up in 2013-14? Australian & Global Equity Manager Performance FY2013-14 The Year in Shares This year the S&P/ASX 300 Index set the benchmark at + 17.3 % + 18.3 % The median Australian shares manager came in 1.0% above at So where were the best returns made? Who’s hot and who’s not? Let’s break the median numbers out by manager style. Long/Short managers were the best performers over the year, outperforming the S&P/ASX 300 Index by 3.1%. Conversely, Income Oriented managers were the only style to underperform the index, falling 1.5% short. The performing managers blew that Index out of the water. Not all industries were created equal. Which sectors saw the most movement in 2013-14? LONG ONLY INCOME ORIENTED INDEX LONG/SHORT ENHANCED INDEX SOCIALLY RESPONSIBLE Source: Mercer, Thomson Reuters Datastream, MSCI. Data provided ’as is’. Source: Mercer, Thomson Reuters Datastream. Data provided ’as is’. All returns in AUD. All performance figures are before fees. SOURCE: Mercer investment surveys – June 2014 DISCLAIMER 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. This infographic is for wholesale investors only. The infographic has been prepared by Mercer Investments (Australia) Limited (MIAL) ABN 66 008 612 397, Australian Financial Services Licence # 244385. Copyright 2014 Mercer LLC. All rights reserved. + 35.5 % + 38.8 % + 32.1 % + 27.9 % + 26.7 % + 13.4 % + 10.9 % + 17.5 % + 6.0 % + 17.5 % + 21.9 % + 10.7 % + 16.1 % + 13.6 % + 15.6 % + 17.2 % + 17.3 % + 18.1 % + 13.8 % + 13.9 % + 13.9 % + 20.4 % + 15.8 % + 17.4 % + 17.7 % + 18.8 % + 19.2 % LONG ONLY TARGETED VOLATILITY SOCIALLY RESPONSIBLE LONG/SHORT INDEX + 23.2 % + 20.7 % + 17.8 % + 21.1 % + 22.1 % Regal Australian Long Short TOP MANAGERS BOTTOM MANAGERS Katana Bmk Unaware Perennial Growth High Conviction Macquarie High Conviction Ausbil Active Extension SGH 20 Russell Aust Shares Enhanced Income CFS W’sale Equity Income CFS W’sale Aust Share Long Short Bennelong Core Equities Consumer staples Financials Consumer discretionary Energy Industrials Healthcare Materials I.T. Utilities Telecom services INDEX While many Australian investors stick to local equities, it’s always worth looking abroad to see how the returns compare. Let’s Go Global Overseas, the MSCI World ex-Aust Index benchmark returned + 20.4 % + 20.9 % The median international share manager posted an excess return of +0.5%, returning The global hot or not chart. Despite the local sharemarket underperforming global markets, a median Australian shares manager would have produced an excess return of at least 1.0%, double that of a median international shares manager. Who came out top of the world in share management in FY2013-14? + 29.0 % + 29.0 % + 28.1 % + 27.8 % + 27.5 % + 13.7 % + 13.3 % + 14.3 % + 14.6 % + 14.6 % Lazard ex Aus130/30 TOP MANAGERS BOTTOM MANAGERS Alliance Bernstein Global Thematic Davis Global Equity T.Rowe Price Global Focused Growth Investec Global Strategic Equity Magellan Global Wingate Global Equity Morgan Stanley Global Franchise Grant Samuel Epoch Global Choice GVI Global Industrial Shares Where in the world were the best gains found? +8.0 % +17.3 % +25.4 % +20.8 % Whilst Australian Shares returned Japan USA Europe By manager style. Which style of manager was the most effective? We look at the median managers. Similar to domestic equities, Long/Short managers were the best performers over the year, outperforming the MSCI World ex-Aust Index by 2.8%. Another example of Source: Mercer, Thomson Reuters Datastream, MSCI. Data provided ’as is’.
