Funds with large Westpac holdings perform well

westpac data

5 November 2019
| By Jassmyn |
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Funds that were invested 10% or more in Westpac performed relatively well despite Westpac Group posting a decline of 16% in its net profit to $6.78 billion during FY19.

According to FE Analytics, all eight funds within the Australian Core Strategies Universe that had a substantial weighting towards the bank returned between 12.55% and 18.38% over the year to 31 October, 2019.

This was despite the bank’s profit being hit by customer remediation costs, cessation of grandfathered advice commissions, exiting its financial planning business, and the impact of regulatory changes on revenue following the Royal Commission.

Westpac Group chief executive, Brian Hartzer, said: “2019 has been a disappointing year. Financial results are down significantly in a challenging, low-growth, low interest rate environment”.

The top performing fund was State Street Global Advisor’s SPDR MSCI Australia Select High Dividend Yield fund which had a 10.35% weighting towards Westpac.

Over the year to 31 October, 2019, the fund returned 18.38%. However, over the three and five year periods the fund dropped to the second quartile in terms of performance at 31% and 31.65% respectively.

 

Weighting in Westpac

One-year to 31 October 2019 performance

Three-years to 31 October 2019 performance

Five-years to 31 October 2019 performance

SSGA SPDR MSCI Australia Select High Dividend Yield

10.35%

18.38%

 

31.05%

31.65%

Mutual 50 Leaders Australian Shares

11.54%

17.01%

 

36.93%

28.99%

BlackRock iShares S&P/ASX Dividend Opportunities ETF

10.62%*

16.48%

23.83%

16.68%

VanEck Australian Banks ETF

20.26%

16.01%

28.47%

32.68%

SSGA SPDR S&PASX 200 Financials ex AREIT

17.52%

15.43%

24.07%

23.81%

BetaShares Australian Dividend Harvester

11.2%*

14.71%

3.83%

1.8%

Antares High Growth Shares Personal

10.1%*

12.9%

39.9%

52.62%

Antares Elite Opportunities Professional

14.62%*

12.55%

36.9%

49.59%

*Largest holding in fund

Source: FE Analytics

The lowest performer of the group, Antares Elite Opportunities Professional had the third highest weighting towards Westpac (14.6%) returned 12.5%. However, over the five years to 31 October, 2019, it was second leader of the pack with a return of 49.6%.

The top performer over the five years was Antares High Growth Shares Personal fund at 52.6%. Both the Antares funds had their largest holding in Westpac.

Performance of funds with large Westpac holding over the year to 31 October 2019

Source: FE Analytics

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