Putting theory into practice
|
Balanced Funds Diversified Balanced |
One year |
Two years |
Three years |
Fund Size |
|
|
FIRST |
AMP Balanced Trust |
9.52 |
11.14 |
9.96 |
39.44 |
|
SECOND |
NZ Funds Balanced Trust |
8.44 |
9.71 |
8.88 |
24.78 |
|
Diversified Defensive |
|||||
|
FIRST |
BNZ Balanced Fund |
6.23 |
8.86 |
8.40 |
124.44 |
|
Diversified Growth |
|||||
|
FIRST |
AMP Dynamic Trust |
13.23 |
15.16 |
12.86 |
14.31 |
|
SECOND |
NZ Funds Capital Growth Trust |
9.68 |
12.22 |
10.74 |
10.10 |
Put simply it is a real test of a good all-round manager. Therefore it's no wonder that AMP, as Fund Manager of the Year, won two of the three categories.
The bulk of the success of the balanced funds lies with the underlying funds used. For this reason a number of these funds invest in funds that have been recognised elsewhere in the awards.
One of the overriding trends to come through in the awards is the conservative approach managers have taken to markets, especially international equities.
Diversified Balanced and Growth
FundSource says AMP won this category because it has exhibited a disciplined, consistent value-driven approach to investment. The asset allocation process focuses on markets and economies from a top-down point of view, concentrating on underlying fundamentals rather than short-term fluctuations. The management of the various asset classes within these diversified funds is delegated to individual sector specialists, with the management of international exposures contracted to AMP's UK-based subsidiary Henderson Investors.
AMP's strategist Paul Dyer says most of the calls they have made during the year have been correct, particularly those to do with bonds and currency.
Diversified Defensive
In line with the BNZ Financial Service's philosophy, short-term deviations from benchmarks are minimal and are implemented gradually rather than actively. International bond and equity investments are made through two of BNZ's specialist funds: the BNZ International Bond Trust and the BNZ International Equity Trust. All other security exposures are achieved through direct investment. The currency exposure of the International Bond Trust must be at least 80 per cent hedged at all times with the remaining 20 per cent at the discretion of the contracted portfolio managers Credit Suisse Asset Management. The fund has an income/growth benchmark of 65/35; however, it is focused more towards offshore assets, compared to similar type funds, with a domestic/international benchmark of 42.5/57.5.
Click here to go back.
