Growth asset performances strong over quarter
Growth assets put in a robust showing over the quarter and year to 31 December 2010 said Bob Cunneen, senior economist
with AMP Capital’s Investment Strategy Team.
Although bonds underperformed due to rising yields over the quarter, AMP Capital's stable of diversified funds produced
positive returns for the quarter and year on the back of strong equity performances.
AMP Capital’s Conservative Fund returned 1.27% for the quarter and 6.67% for the year, its Balanced Fund returned 3.46%
for the quarter and 7.18% for the year and its Growth Fund returned 5.87% and 7.69% respectively. The Balanced
Responsible Investment Fund returned 3.28% for the quarter and 8.47% for the year.
Hedged global equities performed strongly. The Hedged Global Equities Fund returned 10.29% for the quarter and 13.48%
for the year; Unhedged Global Equities returned 1.80% and 3.26% respectively; and New Zealand Equities average return
was 4.78% for the quarter and 6.24% for the year.
Global Property returns remained strong at 8.87% for the quarter and 23.79% for the year.
Both global and domestic returns for income assets (except for cash) were negative for the quarter but remain positive
for the year. The New Zealand Fixed Interest Fund returned -1.18% for the quarter and 7.22% for the year, and Global
Fixed Interest returned -1.19% and 8.43% respectively.
We expect growth assets to continue to perform strongly this year on the back of continued global economic expansion and
a favourable liquidity backdrop. Locally, we expect New Zealand economic growth to accelerate in 2011, although the
cautious household sector remains a drag on growth.
AMP Capital Investors Fund Returns to 31 December 2010
31/12/10 Individual Sectors – Before Tax and Fees
Strategic Equity Growth 4.36% 6.01% -1.25% 6.77%
NZ Equities Active 5.20% 6.48% -2.18% 4.65%
NZ Equity (Average) 4.78% 6.24% -1.72% 5.71%
Global Equities - Unhedged 1.80% 3.26% -6.78 N/A
Global Equities - Hedged 10.29% 13.48% -8.37 N/A
Property 3.46% -10.27% -10.94% 1.85%
New Zealand Fixed Interest -1.18% 7.22% 10.49% 8.04%
Global Fixed Interest -1.19% 8.43% N/A N/A
Cash 1.09% 4.17% 5.91% 6.84%
Global Property 8.87% 23.79% -3.43 N/A
Australian Equities 3.88% 7.13% 0.88% 9.96%
Managed Funds – Before Tax and Fees
Conservative Fund 1.27% 6.67% 6.43% 7.22%
Balanced Fund 3.46% 7.18% 2.00% 5.60%
Growth Fund 5.87% 7.69% -2.34% 3.78%
Balanced Fund - Responsible 3.28% 8.47% N/A N/A
Passive Funds – Before Tax and Fees
Global Equities – Passive 3.66% 6.15% -3.78% 0.18%
Index Performance
MSCI Gross Index - Unhedged 2.59% 4.10% -5.33% -0.34%
MSCI Gross Index - Hedged 8.82% 11.52% -4.22% N/A
NZSX50 Comp w/IC’s 4.44% 3.68% -5.09% 1.25%
NZX Bills Gross Index 0.80% 2.99% 5.02% 6.24%
NZX Bond Index -1.29% 6.98% 8.00% 6.39%
Citigroup World Government Bond Index -1.48% 6.29% N/A N/A
ENDS