Fund manager of the year - Equities

1st: Merrill Lynch Mercury Asset Management

2nd: Colonial First State

3rd: Perpetual Funds Management

Few would be surprised to see the names Merrill Lynch Mercury Asset Management and Colonial First State heading the award-winners in this category for 1998.

After all, it was their respective strength in equities that helped put these two - in reverse order - at the top of this year's fund manager of the year award as well as - in the same order - at the head of the awards for superannuation. Not to mention the other individual awards taken out by Colonial First State (Allocated Pensions and Annuities, Multi Sector).

In a year when the Australian stock market produced double-digit returns almost in proportion to the soaring returns on Wall Street and in Europe, albeit it in a volatile year elsewhere, disciplined managers like Colonial First State and Merrill Lynch Mercury were strongly advantaged.

Both groups have a tight focus on growth as part of their investment philosophy, according to ASSIRT research manager Patrick Bennett.

The outstanding three-year term performing fund for Merrill Lynch Mercury in this category was its $618 million Imputation Fund, although over the one-year term the star was $34 million Equity Fund. Mercury, as it was then, finished in third place in last year's equity fund award category.

Merrill Lynch Mercury's fund performance was reflected in Colonial First State's.

Its $1.873 billion Imputation Fund delivered well above-average three-year returns while its Australian Share Fund had outstanding one-year returns.

Third-placed Perpetual Fund Management, last year's winner in the equities category, again did well with its $1.434 billion Industrial Share Fund. This fund had excellent three-year returns but its one-year figure was somewhat weaker.