Bumper year for fund managers
But there were better gains to be had investing overseas: the median overseas shares manager got a return of 37.3 per cent over the same period. The results in the August Mercer sector surveys exclude tax and management fees.
But they suggest that over three and five years, the median Australian shares manager outperformed the local index by a touch over 1 per cent.
For international shares, the returns were higher but the gap with the index was narrower, at 0.4 per cent over three- and five-year periods.
Over a three-year period, the MSCI World ex-Australia Index returned 13.4 per cent - a better result than the 9.8 per cent returned by the S&P/ASX 300 index.
But over a five-year period, the local bourse ruled, returning 4.5 per cent versus 3.4 per cent overseas.
For long only Australian shares funds, Bennelong Concentrated Australian Equities posted the biggest return, of 41.2 per cent, over the year to August.
Next was Lazard Select Australian Equity, at 39.2 per cent. Hyperion Australian Growth was third-strongest, with 37.3 per cent.
The best long short Australian shares fund was Perpetual Wholesale SHARE-PLUS, which made an annual return of 35.7 per cent. The best long only fund for overseas shares was Harris Associates' Global Concentrated, which returned 65.8 per cent for the year.
Frequently Asked Questions about this Article…
According to Mercer’s August sector surveys, the median Australian shares manager returned 26.4% in the year to August, while the median overseas shares manager returned 37.3%. These results exclude tax and management fees.
No. Mercer’s reported returns exclude tax and management fees, so the headline numbers are before investor-level taxes and any fund fees are taken out.
Mercer’s data show the median Australian shares manager outperformed the local index by a touch over 1% over both three- and five-year periods. For international shares the outperformance over the relevant index was narrower, about 0.4% over three and five years.
Over three years the MSCI World ex-Australia Index returned 13.4% versus 9.8% for the S&P/ASX 300. Over five years the local bourse outperformed, returning 4.5% versus 3.4% for overseas markets.
The best-performing long-only Australian shares funds in the year to August were Bennelong Concentrated Australian Equities (41.2%), Lazard Select Australian Equity (39.2%), and Hyperion Australian Growth (37.3%).
Perpetual Wholesale SHARE-PLUS was the top long-short Australian shares fund, returning 35.7% for the year to August.
Harris Associates’ Global Concentrated fund was the best long-only fund for overseas shares, returning 65.8% for the year to August.
The article shows higher median returns from overseas managers in the year to August, but performance varies by timeframe: overseas led this year, the MSCI World ex-Australia outperformed over three years, while the local bourse led over five years. Also remember Mercer’s figures exclude tax and management fees — so consider timeframe, fees and your personal goals before drawing conclusions.
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