Global shares outshine Australian counterparts
Median institutional Australian share fund managers generated a return of five per cent over the year to 31 December last year, ahead of the S&P/ASX 300 index's 2.8 per cent, but was well down from the longer-term annualised returns of 11.4 per cent over three years, 8.4 per cent over five years and 7.1 per cent over 10 years.
The Morningstar Australian Institutional Sector Survey showed the best-performing Australian share strategies were Bennelong Concentrated (33.9 per cent), Macquarie High Conviction (24.9 per cent), and Wilson HTM (22.2 per cent).
Global share strategies fared better than their Australian counterparts on average, with the median manager returning a 12.7 per cent on an unhedged basis, while individual results varied from 22.3 per cent down to 3.3 per cent.
Longer-term median results were 24.1 per cent over the three years, 15.4 per cent over the five years, and 5.6 per cent over the 10 years to 31 December.
Antipodes was the top performer, returning 22.3 per cent, followed by Carnegie (20.5 per cent), and Johnston (17.6 per cent).
Growth assets also performed well, with Australian listed property yielding the best returns (14.3 per cent), followed by global equities (11.8 per cent), global listed property (6.4 per cent), and Australian shares (2.8 per cent).
Growth Australian share strategies out-performed their value counterparts over the year, with the S&P Australia BMI Growth Index returning 4.5 per cent compared to the S&P Australia BMI Value Index's 0.5 per cent.
The utilities sector was the top performer in the Australian share market, returning 22.8 per cent, followed by consumer discretionary (18.7 per cent) and industrials (16.6 per cent).
Weak performing sectors included energy (-27.7 per cent), resources (-24.9 per cent), and materials (-15.2 per cent).
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