Global equity giants topping the sector over all time frames
Money Management looked at the giant funds with over $9 billion in funds under management (FUM) in the ACS Equity - Global sector producing top quartile returns over one, three, five and ten-year time frames.
Unsurprisingly, three household names sat in the top quartile for performance over a ten-year time frame: AMP, Platinum and Magellan.
With $9.7 billion in FUM, Magellan’s FE two-Crown rated Global ATR fund returned 13.47 per cent, almost double the sector average of 7.33 per cent, while the MSCI World index returned 8.99 per cent.
Platinum’s four-Crown International fund was next, with the $11.5 billion fund producing a return of 10.55 per cent.
AMP Capital’s three-Crown Enhanced Index International Shares fund was the biggest giant in the sector with $11.8 billion in FUM and produced the third-best returns of 8.34 per cent.
While the funds outperformed the sector average, they certainly gave investors a bumpy ride with above-average volatility.
AMP sat in the bottom quartile for volatility at 11.48 per cent as opposed to the sector average of 10.21 per cent and the MSCI World Index’s 11.26 per cent.
Platinum’s volatility was most correlated to the sector at 10.45 per cent but managed to remain below the index.
The chart below shows the performance of the funds over a ten-year period relative to the global equities sector.
Over five years, the AMP Capital Enhanced Index International Shares was the top performing giant in the sector with returns of 15.93 per cent as opposed to the sector average of 13.20 per cent.
The Vanguard International Shares Index fund was the other top performing giant with $15.3 billion in FUM and returns of 15.39 per cent, also above the index of 15.97 per cent.
The chart below shows the performance of the funds over five years compared to the sector.
AMP Capital’s same fund remained the sole top-performing giant fund over three years, with returns of 10.03 per cent as opposed to the sector average of 8.53 per cent.
AMP Capital’s Enhanced Index International Shares fund was therefore among the top performers over a three, five and ten-year period, dropping in the year to date.
International equities Apple, Microsoft Corp, Amazon, Facebook and Nestle sat in the top ten holdings, and volatility sat slightly above the sector, which was 9.52 per cent, at 10.24 per cent.
Platinum’s International fund dropped over the shorter three and five-year periods but jumped back to be the top performer over one year to date with returns of 16.82 per cent as opposed to the sector average of 11.60 per cent.
AUTHOR
Anastasia Santoreneos
Recommended for you
Grant Hackett has been promoted from CEO of Generation Life to head up the wider Generation Development Group.
Tribeca Investment Partners has made a distribution hire from Australian Ethical in a newly-created role focused on the national intermediary market.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
