Many and happy returns
But better gains were to be had investing overseas: the median overseas share manager returned 37.3 per cent over the same period. The results in Mercer Sector Surveys, August 2013 exclude tax and management fees.
But they suggest that over three and five years, the median Australian share manager outperformed the local index by a touch over 1 percentage point. For international shares, the returns were higher but the gap with the index was narrower, at 0.4 percentage points over three and five years.
Over a three-year period, the MSCI World ex Australia Index returned 13.4 per cent - the S&P/ASX 300 Index returned 9.8 per cent. 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 share funds, Bennelong Concentrated Australian Equities posted the biggest return, of 41.2 per cent, over the year to August.
Next was Lazard Select, which returned 39.2 per cent. Hyperion Australian Growth was the third-strongest performer, returning 37.3 per cent.
Frequently Asked Questions about this Article…
According to Mercer (Mercer Sector Surveys, August 2013), the median Australian share manager returned 26.4% in the year to August, while the median overseas share manager returned 37.3% for the same period. These results exclude tax and management fees.
No. Mercer’s Sector Surveys (August 2013) explicitly state the reported returns exclude tax and management fees, so the figures are pre-tax and before fund management costs.
Over both three- and five-year periods the median Australian share manager outperformed the local index by about one percentage point, meaning managers slightly beat the S&P/ASX benchmark on a median basis over those time frames.
For international shares, median manager returns were higher in absolute terms, but the difference versus the index was narrower — about 0.4 percentage points over both three- and five-year periods, according to Mercer’s data.
Over a three-year period the MSCI World ex Australia Index returned 13.4% versus the S&P/ASX 300’s 9.8%. Over a five-year period the S&P/ASX 300 outperformed, returning 4.5% compared with 3.4% for MSCI World ex Australia.
For long-only Australian share funds, Bennelong Concentrated Australian Equities was the top performer with a 41.2% return in the year to August. It was followed by Lazard Select at 39.2% and Hyperion Australian Growth at 37.3%.
In the year to August, median overseas share manager returns were higher (37.3%) than median Australian managers (26.4%). However, over longer horizons the picture varied: international managers achieved higher absolute returns in some shorter periods, but the local S&P/ASX 300 led over the five-year span.
Mercer’s August 2013 survey shows active Australian managers modestly outperformed the local index by about 1 percentage point over three and five years, while international active managers had higher absolute returns but only a 0.4 percentage-point edge over their index. Also note the published figures exclude tax and management fees, which will reduce net returns for investors.
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