IAG tops Oz equity tables

The research fund run by Insurance Australia Group’s funds management arm is Mercer Investment Consulting’s top performing Australian share manager in the 12 months to June 30, posting a return of 37.9 per cent.

MIR Investment Value placed second in the rankings for the year, posting returns of 36.8 per cent, compared to the S&P/ASX 300 Index's median return of 26 per cent.

The median return is the highest for 15 years in the Australian market, according to Mercer, and follows a median return of 21 per cent in 2003-04.

Australian EquityLazard Select claimed third place in the 2004-05 Mercer rankings, returning 36 per cent, followed by LeadersING Select, returning 35 per cent.

Managers with overweight positions in the energy and materials sector were rewarded for the second year in a row, with these sectors returning 67.2 per cent and 36.6 per cent respectively.

Consumer discretionary and telecoms were a drag on the market, with their respective sector indices returning only 4.5 per cent and 7.8 per cent.

This year's return has boosted the three and five-year Australian share manager numbers to a median 14.7 per cent and 9.5 per cent respectively.

Dimensional Aust Value posted the highest returns over three years, 19.8 per cent and second highest over five years, with 18.3 per cent.

Meanwhile, the median overseas shares manager in Mercer’s 2004-05 survey was able to beat the Mercer Overseas Share Index by only 1.2 per cent.

The top performing overseas share manager was Arcadian Global Equity, which returned 12.3 per cent.