Local stocks benefit fund managers

By Phil Boeyen, ShareChat Business News Editor

Wednesday 25th July 2001

A survey of New Zealand wholesale superannuation fund managers shows the Australian and New Zealand sharemarket were the bright spots in the June quarter.

Mercer Investment Consulting which carried out the survey, says after an exceptional performance in the first quarter, the New Zealand stock market underwent a period of consolidation but still managed to outperform their global counterparts in unhedged NZ dollar terms.

"A large exposure to Australian equities, as well as an exceptional return for Trans-Tasman equities, helped Colonial First State Investment Management achieve the highest return for the quarter of 6.8% before tax and fees," says Mercer executive director Louis Boulanger.

"Other factors that helped Colonial First State achieve this return were a low allocation to overseas equities and nil holdings in New Zealand fixed interest assets."

Mr Boulanger says the June quarter was a volatile one for investments. However, apart from New Zealand fixed interest and foreign currency, all sectors produced positive returns for the quarter.

The survey shows the return of the median manager for the June quarter was 2.9% before tax and fees.

Returns for the past twelve months have ranged between a gross 6.6% return from Tower Asset Management and a negative 4.3% return from Armstrong Jones. The median for the twelve months was 1.3% before tax and fees.

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