Funds manager claims markets improving

By Phil Boeyen, ShareChat Business News Editor

Tuesday 17th July 2001

The country's biggest investment management company, AMP Henderson, says latest quarterly returns suggest the worst is over for investment markets.

AMP Henderson says it recorded solid pre-tax returns of 2%, 3.5 % and 4% for the low risk, medium risk and high risk funds respectively, while its strategic equity growth fund had a pre-tax return of 18.1 % over the quarter.

The fund, launched in February, pursues an absolute return strategy focusing on growing companies with no reference to market weightings. It was helped by substantial holdings in Fisher and Paykel and Rubicon, with both stocks up by over 50% during the quarter.

"Following the turmoil of the previous six months, equity markets enjoyed solid returns during the June quarter," says head of strategy, Paul Dyer.

"After the heavy sell down earlier this year, the last quarter saw strong gains in the sectors that were most oversold - notably cyclical and technology stocks."

Mr Dyer says the turnaround in many of the large technology stocks benefited the AMP World Index Fund (WiNZ) in particular, which achieved an after-tax return of 3.9%.

A new Inland Revenue ruling means the WiNZ fund will continue to pay no tax on the sale of shares, and AMP Henderson says it has allow it to increase global shares in WiNZ from 260 to over 750 stocks.

AMP Henderson Global Investors has over $10 billion in funds under management.

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