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TRANSCRIPT
Global Equities Sector Wrap-Up
June 2015
Director of Manager Research
Tim Murphy, CFA
Director of Manager Research Ratings
Tom Whitelaw
Manager Research Analysts
Mark Laidlaw
Andrew Miles
Alex Prineas
Julian Robertson
Elliot Smith
Tim Wong, CFA
Wilson Wong
Matthew Wu
Kathryn Young
iiJune 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Contents
Executive Summary 1
Changes to Morningstar Analyst Ratings 2
A Rough Spell for Active Managers 4
Currency Diversification: Alive and Well 6
Are Managers Becoming Defensive? 7
Role in Portfolio – Blending Global-Equity Strategies 9
Morningstar Medallists 13
Appendix 1: Basic Data 15
Appendix 2: Portfolio Characteristics 18
Appendix 3: People 21
Appendix 4: Style Box Breakdowns 24
Copyright, Disclaimer & Other Information 27
1June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Executive Summary
Morningstar has completed qualitative research
assessments of global equities investment
strategies, including all strategies under coverage
in the global large-cap, global small-cap, Asian,
and emerging-markets equity sectors. This sector
wrap-up provides an overview of our key
observations and a summary of our Morningstar
Analyst Ratings.
We start with a look at changes to our Morningstar
Analyst Ratings subsequent to the review. We
upgraded a total of five funds, including one to
Gold from Silver. We downgraded two funds to
Neutral from Bronze, and initiated coverage of
eight vehicles.
Next, we take a look at the underwhelming
performance of active managers within global
large-cap equities over the course of 2014. Only
about one quarter of our coverage list of active
managers outperformed the MSCI World ex
Australia Index’s 15% gain. We examine
explanations for that disappointing trend.
Morningstar has long been a proponent of
unhedged global-equity exposure for its potential to
diversify equity risk at the overall portfolio level.
We update that argument in light of the significant
declines in the Australian dollar versus major
developed market currencies, particularly the U.S.
dollar.
After successive years of strong gains out of global
equities, advisers and their clients might
understandably be wondering if the time has come
for a more defensive posture. Besides talking with
portfolio managers, there are several ways we can
gauge whether a manager has an eye toward
defence more than offense. We step through some
of those in an effort to measure the mood of
managers we cover.
For our regular discussion on the sector’s role in
investor portfolios, we take our view that global
equities should play a foundational role as given.
We look at ways to blend to managers together
and some particularly useful data points.
We conclude with a list of those strategies we
designated Morningstar Medallists and tables of
data summarising key features of our coverage list.
Full copies of our research reports, as always, are
available in the Morningstar Adviser Research
CentreTM and Morningstar DirectSM.
Kathryn Young
Senior AnalystManager Research
2June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Changes to Morningstar Analyst Ratings
We take a medium- to long-term outlook when determining
qualitative recommendations. Our views about the merits of
investment strategies move over time on the basis of
manager-specific factors such as investment team
composition, changes to investment process, and our degree
of relative conviction. The following is a description of all the
changes to Morningstar Analyst Ratings that occurred during
this review cycle.
Global Large CapUpgrades
We upgraded Magellan Global 15699 to Gold from Silver.
This popular strategy has proved itself for more than seven
years now, and we have become more confident in the firm’s
ability to manage a growing team and significant growth in
funds under management.
Downgrades
We downgraded Capital International Global Equity
17251 to Neutral from Bronze. Organisational changes
introduced from 2011 aimed at combating staleness and
inefficiency have done little to engender confidence that the
strategy can produce sustainable, above-market returns.
We moved Goldman Sachs International 4546 to Neutral
from Under Review. It was rated Bronze before going under
review. In August 2014, Goldman Sachs replaced subadviser
Wellington Management with a London-based internal team
called Global Equity Partners, which has undergone a number
of changes since its 2003 start, which concerns us. The
current approach has been in place since 2011. We think it is
investable but has yet to prove itself outstanding.
New Coverage
We initiated coverage of SPDR S&P World ex Australia
ETF WXOZ and SPDR S&P World ex Australia Hedged
ETF WXHG at Bronze. Unlike cross-listed rivals, these ETFs
are dedicated local listings, which should alleviate
paperwork burden for Australian investors. By tracking the
S&P Developed Ex-Australia LargeMidCap Index, they offer
well-diversified exposure, and they’ve reached suitable
scale.
We initiated coverage of SPDR S&P Global Dividend ETF
WDIV at Neutral. We appreciate that it is locally listed and
offers a yield of about 4.5% at the time of writing, which is
much higher than the 2.0% offered by broader global
equities. However, relatively high turnover and a high price
tag for an exchange-traded fund prohibit us from having a
more positive view overall.
We initiated coverage of Vanguard MSCI Index
International ETF VGS and Vanguard MSCI Index
International ETF Hedged VGAD at Bronze. These funds
track the well-known MSCI World ex Australia Index, and
they are the cheapest listed vehicles in the market that also
offer such well-diversified exposure.
We initiated coverage of Carnegie WorldWide Equity
Trust 4542 at Neutral. We believe this strategy, which is
offered by BNP Paribas Investment Partners, has potential to
be a credible offering. It is managed by a long-tenured team
that seeks quality companies that can deliver long-term
growth. However, it will take some time to get more
comfortable with the thematic elements of its approach,
which can supersede the quality criteria.
We initiated coverage of Platinum Global Fund 40540 at
Silver. This fund was launched in September 2014
specifically to be offered on the ASX’s mFund settlement
service platform for unlisted funds. It’s designed to be
substantially similar to Platinum’s flagship International
strategy, which we rate Gold. However, some tweaks
necessary for mFund qualification and lack of scale prohibit
us from having as much conviction in this vehicle as we do
the flagship.
Other
We returned Perpetual Wholesale International Share
4364 to a Neutral rating after it had been placed under
review. Perpetual moved the management of this strategy
in-house after terminating subadviser Wellington
Management in January 2015. We appreciate that the
investment process and team are aligned with Perpetual’s
successful Australian equities unit, but we are cautious
about the team’s short track record and depth of resources.
Kathryn Young
Senior AnalystManager Research
3June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Ceased
During the 2014 global-equities sector review, we ceased
coverage on the following strategies: AMP Capital Global
Equity Growth 6833, GMO Global Equity Trust 8874,
Pinnacle Global Shares High Alpha Trust 15312, and
River and Mercantile World Equity 14377.
Global Small CapUpgrades
We upgraded Vanguard International Small Companies
15897 to Bronze from Neutral. A gradual increase in assets
has allowed Vanguard to move from optimised sampling
toward full replication of the MSCI World ex Australia Small
Cap Index. We believe capable active managers should be
able to add value in this sector but few have sustainably, so
Vanguard stands out as a reasonable way to access global
small caps.
We upgraded Hunter Hall Global Value HHV and Hunter
Hall Value Growth Trust 3876 to Neutral from Negative.
The firm still has work to do as it stabilises the business
after a raft of staff departures and strategy tweaks, but we
think the remaining managers deserve credit for taking steps
in the right direction, including the introduction of a retention
scheme for key staff and fee reductions. This strategy
remains punchy and atypical, but it is investable.
Ceased
We ceased coverage of the following strategies: Schroder
Global Small Companies 5055, BlackRock WS Global
Small Cap 6944, and Hunter Hall Global Equities Trust
7869.
Asian & Emerging MarketsUpgrades
We upgraded BT Asian Share WS 4246 to Bronze from
Neutral. JO Hambro Capital Management (JOHCM) took over
this strategy in March 2014. We like the team’s high
conviction and benchmark-agnostic approach, and we have
confidence in its research and analysis.
New Coverage
We initiated coverage of Vanguard FTSE Emerging
Markets Shares ETF VGE at Bronze. This vehicle tracks the
FTSE Emerging Markets Index and is the cheapest emerging-
markets ETF in the market. It is locally listed, which should
mitigate tax and paperwork burdens for Aussie investors, but
it gains efficiency by investing into a U.S.-listed ETF that
Vanguard has offered since 2005.
Ceased
During the 2014 sector review, we ceased coverage of
Schroder Global Emerging Markets 14838.
4June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
A Rough Spell for Active Managers
While the MSCI World ex Australia Index had a solid year
in 2014 with a 15.01% return but only about a quarter of
Morningstar’s international active equities coverage
outperformed the index after fees. This was the second
successive year that most active managers failed to
surpass the benchmark, testing the patience of investors.
Our 2013 global equities sector wrap identified weak
emerging markets performance and the rising U.S. dollar
among several themes that detracted from the relative
performance of many active managers during 2013. These
remained relevant factors in 2014. The MSCI Emerging
Markets NR index returned 6.93% during the year –
behind broader global equities. The U.S. dollar’s ongoing
strength compounded the relative pain of maintaining a
below index exposure to the outperforming U.S. stock
market that most fund managers held.
Indeed, an underweight to U.S. equities detracted
significantly across many active large cap international
equity strategies. Underweight exposure to oil helped
many managers but underweight exposures to healthcare
and technology detracted, as did an overweight to value.
Managers Typically Underweight the U.S.
An underweight to the United States was easily the
biggest detractor in the country positioning of active fund
managers. The U.S. dominates the MSCI World ex
Australia Index, with an approximate 59% weighting at
the end of 2014. U.S. equities rose substantially in
Australian dollar terms during 2014 to rank among the
best in developed markets. Its 23% return was boosted by
the Australian dollar’s 9% stumble against the greenback.
However, active managers generally viewed the U.S. as
overvalued on the back of unprecedented central bank
stimulus. Only five managers were overweight the U.S.
through the course of the year, on average. Perhaps
revealingly, outperforming managers were 4%
underweight on average, compared to 15% underweight
for the group of laggards.
Underperformance of Value
Another prominent theme was the underperformance of
value relative to growth. In 2014, the equity world
large-growth Morningstar Category (which encompasses
all funds in that category that are on Morningstar’s
databases) returned 13.51%, while the equity world
large-value category returned only 11.53%. The overall
P/E differentials across these two categories were
significant, with value at 14.0 times compared with
growth’s 18.3 times. The lowest P/E quintile of the MSCI
World ex Australia significantly underperformed the other
quintiles; thus, value’s underperformance to an extent is
unsurprising.
Energy, Health Care, and Technology
The oil price plunge in the second half of the year was the
biggest story of 2014. The average manager was
underweight energy relative to the MSCI World ex
Australia Index, helping to limit the pain associated with
oil’s dive. That said, the typical outperforming manager
had lower weightings.
Other sectors of note include health care and technology.
These sectors performed particularly strongly with 30.0%
and 27.2% returns, respectively. And positioning in these
sectors was a common factor in relative returns among
funds; those that outperformed tended to have an
above-average exposure compared with the laggards.
The Case for Active Management
While 2014 was undoubtedly disappointing for active
management, a select group of these strategies still retain
qualities that we expect to reward investors over the long
term.
Indeed, we raised this issue after observing the travails of
active global equity managers in our April 2014 Talking
Point – Passive Strategies Pass Muster in Global Equities.
A period of underperformance can colour views on the
merits of various strategies, but investors should remain
wary of extrapolating this into the future. Investors should
also look beyond short term performance before drawing
conclusions. Some reasonable fundamental arguments
exist to defend active manager’s performance over the
course of 2014, such as valuation-related concerns
attributable to unprecedented central bank stimulus. And
some of our Gold-rated managers, including Magellan
Global 15699 and Platinum International 4505, still boast
impressive track records over the course of a market cycle.
This instils confidence in their investment merit and
supports our view that they have distinct competitive
advantages that can sustain success.
Matthew Wu
AnalystManager Research
5June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Table 1: Coverage-List Performance Versus the MSCI World ex Australia Index
Name 2014 Total Return
Acadian Wholesale Global Eqty Long Short 21.36
Carnegie WorldWide Equity Trust 20.76
Generation Wholesale Global Share 20.27
Arrowstreet Global Equity 19.98
MFS Concentrated Global Equity Trust W 18.26
Acadian Wholesale Global Equity 17.77
T. Rowe Price Global Equity 17.68
BlackRock Scientific Intl Equity Fund 17.31
AMP Capital FD Core International Shr 16.35
IFP Global Franchise 15.75
Grant Samuel Epoch Gbl Eq Shldr Yld Uhgd 15.74
BT Core Gbl Share WS 15.59
MSCI World Ex Australia NR AUD 15.01
AMP Capital W Global Equity Value 14.57
Magellan Global 14.55
PM Capital Global Companies 14.39
MFS Global Equity Trust 13.99
AMP Capital Res Inv Leaders Intl Shr A 13.90
Advance International Shr Multi-Blend W 13.90
Acadian Global Managed Volatility Equity 13.86
Zurich Investments Gbl Thematic Shr 13.70
Russell Global Opportunities A 13.30
CFS FC W Inv-FirstChoice W Global Share 13.27
Perpetual Wholesale International Share 13.08
Dimensional Global Large Company Trust 13.02
Franklin Global Growth W 12.81
MLC Wholesale Global Share 12.73
Schroder Global Value 12.59
Fidelity Global Equities 12.33
Walter Scott Global Equity 12.18
Wingate Global Equity Fund 12.11
Goldman Sachs International WS 11.62
Zurich Investments Unhedged Global Gr 11.52
Dimensional Global Core Equity Trust 11.41
UBS International Share 11.05
Ironbark GTP Global Equity Thematic 10.98
Realindex Wholesale Global Share 10.87
Altrinsic Global Equities Trust 10.52
Capital International Global Equity 9.99
GVI Aubrey Global Growth & Income Unhdgd 9.74
Aberdeen International Equity 9.68
CFS FC W Inv – CFS W Worldwide Leaders 9.59
Dimensional Global Value Trust 9.16
Platinum Unhedged Fund 8.39
Platinum International Fund 7.79
Templeton Global Trust Fund 7.13
Threadneedle Global Equity Income Unhdgd 5.46
Platinum International Brands Fund 0.46
6June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Currency Diversification: Alive and Well
At Morningstar, we have long maintained that potential
diversification benefits make unhedged global-equities
exposure an ideal way to manage risk at the overall portfolio
level. For several years after the global financial crisis, as the
Australian dollar appreciated to and remained at levels many
considered overvalued, possible gains resulting from any
currency depreciation provided more tactical support to that
structural view. After marked declines in the currency, most
notably against the U.S. dollar, we think it’s worth reiterating
this stance lest anyone believe that the argument in favour
of currency diversification is impaired.
The Case for Unhedged Global Equity Exposure
The Australian dollar is widely regarded as a procyclical
currency because it tends to rise in benign markets and fall
in rougher times. Figure 1 above demonstrates that clearly.
The local dollar became less valuable during notable bear
markets, including the “tech wreck” of March 2000 to
October 2002 and the global financial crisis of June 2008 to
March 2009. It then proceeded to gain value against the U.S.
dollar as equity markets recovered. That tendency means
that foreign-currency exposure can act as a natural offset to
declines in an investor’s equity allocation during times of
market stress. It’s worth noting that the offsetting
relationship isn’t perfect or guaranteed. There have been
times in the past when global equities have declined yet the
Australian dollar has appreciated. But Figure 1 clearly shows
that during the worst times for equity markets, the Aussie
dollar has declined.
Figure 2 below illustrates how powerful that can be at the
total portfolio level. It shows that a portfolio of unhedged
global equities, using Vanguard International Shares
Index 4489 as a proxy, is far less correlated to domestic
shares than a portfolio of hedged global equities, with
Vanguard International Shares Index Hedged 6430 as the
proxy.
It also demonstrates that, if anything, the potential for
unhedged global equities to diversify equity risk at the
overall portfolio level seems to have only increased
throughout the past year. The correlation to domestic shares
has declined to almost zero, even going negative for a brief
period, as the Australian dollar depreciated relative to other
major currencies, especially the U.S. dollar.
Many market observers think the Aussie dollar has further to
fall before reaching fair value. In December 2014, Reserve
Bank of Australia Governor Glenn Stevens suggested USD
0.75 might be an appropriate level. But it would have to fall
quite a bit more from here to diminish the potential
diversification benefits of unhedged global-currency
exposure. In 2008, it fell to nearly USD 0.60 and in 2000 it
fell to about USD 0.50. Arguably, the outlook for Australia’s
terms of trade is worse now than it was then So, it’s easy to
believe that it could still provide plenty of offset to global
equities if markets hit a rough patch in the near future.
Figure 2: 3-Year Rolling Correlation to S&P/ASX 200 Index
— Vanguard International Shares Index — Vanguard International Shares Index Hgd AUD
08/2
003
06/2
004
01/2
004
04/2
005
11/2
004
02/2
006
09/2
005
12/2
006
07/2
006
10/2
007
05/2
007
08/2
008
03/2
008
06/2
009
01/2
009
04/2
010
11/2
009
09/2
010
02/2
011
07/2
011
12/2
011
05/2
012
10/2
012
03/2
013
08/2
013
01/2
014
06/2
014
11/2
014
04/2
015
-0.2
0.0
0.2
0.4
0.6
0.8
1.0
Source: Morningstar DirectSM
Figure 1: AUD/USD Exchange Rate – January 1999 to April 2015
0.0
0.2
0.4
0.6
0.8
1.0
1.2
01/1
999
01/2
000
01/2
001
01/2
002
01/2
003
01/2
004
01/2
005
01/2
006
01/2
007
01/2
008
01/2
009
01/2
010
01/2
011
01/2
012
01/2
013
01/2
014
01/2
015
Source: Morningstar DirectSM
Kathryn Young
Senior AnalystManager Research
7June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Are Managers Becoming Defensive?
Elliot Smith
AnalystManager Research
Table 2: Cash Allocations of the Average and Median Manager During the Past 3 Years
(Average cash % of portfolio) 2012 2013 2014 2015
2014
Q1
2014
Q2
2014
Q3
2014
Q4
2015
Q1
Average Manager 4.12 4.66 5.28 4.47 5.12 4.89 4.52 4.29 4.32
Median Manager 2.57 2.74 2.61 2.46 2.91 2.83 2.69 2.62 2.34
Source: Morningstar DirectSM
Table 3: Number of Portfolio Holdings and Percentage of Assets in Top-10 Holdings
for the Average and Median Manager
2012 2013 2014 2015
2014
Q1
2014
Q2
2014
Q3
2014
Q4
2015
Q1
Average Manager (# holdings) 82.97 86.36 84.90 84.74 84.41 86.88 82.85 84.14 84.74
Median Manager (# holdings) 80.25 85.79 81.08 81.33 82.17 84.67 81.67 82.00 81.33
Average Manager
(% in top 10)23.94 23.12 23.87 24.86 23.30 23.54 24.83 24.73 24.86
Median Manager
(% in top 10)21.17 20.37 21.08 21.99 20.68 20.37 22.18 21.99 21.99
Source: Morningstar DirectSM
Global equities have had a stellar run since 2012, the MSCI
World ex Australia Index has grown more than 110% as it
has been fuelled by accommodative monetary policy and
improving economic sentiment. Underlying company
fundamentals have struggled to keep pace, though, as
valuations of most global equity markets are at or nearing
historical highs. This begs the question, do fund managers
think there is more fuel for the fire or are they positioning
themselves for a downturn? There are several ways that we
can gauge how fund managers are positioning their
portfolios, and we will evaluate some of them here.
(Please note that ETFs, indexlike funds, and multimanager
strategies have been removed from this analysis as the
flexibility of portfolio construction is limited in these
products.)
Cash allocations in an equity portfolio have a polarizing
effect on performance. During a down market, cash
allocations are a saviour for managers because they provide
effective downside protection and are cheap and easy to
implement. Most managers, however, are limited in their
ability to hold cash and remain close to fully invested. This
is reflected in the consistently low average cash levels of
managers during the past three years (see Table 2).
However, some managers who are focused on absolute
returns have exercised their ability to hold meaningful cash
allocations. CFS Worldwide Leaders 4672 increased cash
to 15% from 2% at the end of 2013, and it now sits at 19%.
Magellan Global increased its cash allocation to 10% in
August 2014 and again to 15% in April 2015. On both
occasions, veteran investor Hamish Douglass documented
his caution about an increasing interest environment in the
U.S. and the potential for the risk premia supporting asset
valuations to unwind under these circumstances.
Increasing the number of portfolio holdings or reducing the
percentage of assets held in top-10 holdings can also be
seen as a defensive play. This reduces stock-specific risk
and can limit the risk of underperformance during a market
correction. It appears that this hasn’t been the case, though,
as the number of holdings held has remained constant
during the past three years (see Table 3). Within the
universe, several managers bucked this trend. CFS
Worldwide Leaders has roughly halved its number of stock
holdings and increased the concentration in top-10 holdings
since 2012, a result of fewer stocks meeting its stringent
value criteria as the market has rallied.
Given the restrictions on cash allocations and the number of
holdings, stock selection is the primary tool that managers
use to position their portfolios more defensively. One
qualitative measure that we can look at is the investment in
defensive sectors such as health care, consumer defensive,
and utilities. Table 4 shows that it is difficult to spot a trend
in how allocations to defensive sectors have varied during
the past three years. It is worth noting the increase in
weighting of defensive stocks within the MSCI World ex
Australia Index. This is largely due to health care, which has
had a very strong run during the past three years; its
weighting in the index has increased to 13.90% from
10.39% over the period. There has been some significant
movement at the fund level, Magellan Global has seen its
defensive exposure drop to 24% from 48%, while CFS
Worldwide Leaders has ramped it up to 57% from 23%.
Table 4: Ratio of Investment in Defensive Sectors Relative to the Defensive
Allocation in the Market Index
2012 2013 2014 2015
2014
Q1
2014
Q2
2014
Q3
2014
Q4
2015
Q1
MSCI World ex-Aus
Defensive Sector
Weighting(%)
25.36 25.32 25.62 26.98 25.31 25.28 26.26 26.48 26.98
Average Manager
(ratio to market)1.09 1.04 1.07 1.02 1.08 1.09 1.07 1.05 1.02
Median Manager
(ratio to market)1.00 0.94 0.96 0.97 0.97 0.96 1.00 0.99 0.97
Source: Morningstar DirectSM
(Note: The data used has been adjusted to remove the effects of cash, only equity exposure included.)
8June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Table 5: Ratio of Return on Invested Capital of Managers Relative to the Market
2012 2013 2014 2015
2014
Q1
2014
Q2
2014
Q3
2014
Q4
2015
Q1
MSCI World ex-Aus ROIC (%) 14.02 12.10 12.69 13.06 11.27 13.06 13.11 13.18 13.06
Average Manager
(ratio to market)1.03 1.01 0.99 1.00 1.00 0.98 1.03 1.00 1.00
Median Manager
(ratio to market)1.00 1.01 0.97 1.00 1.04 0.94 0.98 1.00 1.00
Source: Morningstar DirectSM
Table 6: Debt/Capital of Portfolios Relative to the Market
2012 2013 2014 2015
2014
Q1
2014
Q2
2014
Q3
2014
Q4
2015
Q1
MSCI World ex-Aus
Debt/Capital35.03 34.72 35.04 36.22 34.76 34.75 35.45 35.64 36.22
Average Manager
(ratio to market)0.94 0.93 0.93 0.92 0.94 0.94 0.93 0.92 0.92
Median Manager
(ratio to market)0.92 0.95 0.94 0.94 0.95 0.93 0.93 0.93 0.94
Source: Morningstar DirectSM
Companies with strong underlying earnings are in high
demand during a downturn, as companies reliant on
fulfilling lofty growth expectations are susceptible to being
punished by the market. Looking at the return on invested
capital (ROIC) provides a gauge of how efficiently a
company generates earnings with the debt and equity
provided by investors. Unfortunately, in aggregate, there is
no observable trend in ROIC from the past three years, see
Table 5. Nonetheless, the metric provides investors with a
tool to assess the quality of stocks a manager is investing
in. For example, AMP Capital Responsible Investment
Leaders 6842 has increased its ROIC to 16% from 13%
during the past three years, while several managers have
seen their quality slip.
The last measure we will look at is the quality of the
balance sheets that portfolios are exposed to, in particular
the financial leverage employed by companies to drive their
businesses. The data (Table 6) shows that financial leverage
has remained relatively constant, but it is worth noting the
divergence within the universe. For instance, IFP Global
Franchise 12160 and Platinum International Brands
6643 saw significant decreases in their underlying leverage,
while T. Rowe Price Global 14479 and Lazard Global
Small Cap 10701 increased their exposure to leveraged
companies.
In conclusion, the data does not support the argument that
managers are becoming more defensive as a whole.
However, there is significant divergence in how managers
view global equity markets and how they are positioning
their portfolios. For investors looking for a conservative
global equity option, these measures should hopefully
provide some clarity in what is an eclectic asset class.
9June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Role in Portfolio – Blending Global-Equity Strategies
Identifying the qualities and competencies of a fund manager
in an asset class and allocating a Morningstar Analyst
RatingTM is one task, but understanding the role an investment
strategy can play in a portfolio is another. It’s important to
construct a portfolio from our preferred fund managers, as we
believe that they have the credentials to perform well through
a full market cycle. However, it doesn’t follow that throwing
our highest-rated fund managers together will deliver an
appropriate exposure. Investors and advisers therefore need
to understand the characteristics and exposures of the
individual funds, and how these can be blended together to
create a robust and diversified portfolio.
One of the simplest ways of quickly understanding a fund’s
style and market-cap profile is to use the Morningstar Style
BoxTM. This is a holdings-based style map that can help
assess where the weight of the exposure is, and the breadth
of exposure the strategy provides. The style map shows the
portfolio’s exposure at a given point in time, while the style
trail (available in our institutional software platform
Morningstar DirectSM) shows the historical portfolios, to give
an understanding of how the fund has been positioned over
time. This helps minimise any unintended style overlaps
which may reduce diversification and increase risk. Figure 3
Mark Laidlaw
Senior AnalystManager Research
Figure 3: Holdings-Based Style Maps and Style Trails, MFS Global Equity Trust, Platinum International and Magellan
Holdings-Based Style Trail
Mic
roM
idG
iant
Deep-Val Core High-Grth
Magellan Global
Time Period: 30/06/2010 to 31/03/2015
30/06/2010 31/03/2015Platinum International Fund30/06/2010 31/03/2015
Time Period: 30/06/2010 to 31/03/2015
Holdings-Based Style Trail
Time Period: 30/06/2010 to 30/04/2015MFS Global Equity Trust30/06/2010 30/04/2015
Holdings-Based Style Trail
Larg
eSm
all
Core-Val Core-Grth
Mic
roM
idG
iant
Larg
eSm
all
Deep-Val Core High-GrthCore-Val Core-Grth
Mic
roM
idG
iant
Larg
eSm
all
Deep-Val Core High-GrthCore-Val Core-Grth
Deep-Value Core-Value Core Core-Growth High-Growth
Gia
ntLa
rge
Mid
Smal
lM
icro
Centroid
Investment Name Date
MFS Global Equity Trust 31/03/2015
Platinum International Fund 31/03/2015
Magellan Global 31/03/2015
Holdings-Based Style Map
Source: Morningstar DirectSM
10June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
shows the holdings-based style maps and style trails for MFS
Global Equity Trust 4532, Magellan Global, and Platinum
International.
In terms of the role a particular strategy should play in a
portfolio, we refer to a strategy as being either a core holding
or a supporting player. There are no hard and fast rules that
dictate into which of these buckets a particular fund might sit.
It’s more of an art than a science, taking into account a range
of factors that have varying importance depending on the
category.
One factor that plays a role is a fund’s market-cap exposure.
Though there are certainly exceptions, strategies investing
predominantly in large, well-established companies will
generally be classified as core holdings. The majority of funds
covered in this review can be considered core holdings, as
most are predominantly in the large- and giant-cap box in
terms of average market-cap size. (Figure 4).
Just as important when it comes to assessing the correct
blend of managers is their underlying regional and sector
split. Does a manager play emerging markets directly or do
they look to developed-markets proxies for their exposure?
This potential dispersion is shown clearly when looking at the
Figure 4: Holdings-Based Style Map, Morningstar Medallist Large-Cap Global Share Funds
Mic
roSm
all
Mid
Larg
eG
lant
Deep-Val Core-Val Core Core-Grth High-Grth
Holdings-Based Style Map
Magellan Global
MFS Global Equity Trust
Arrowstreet Global Equity
BT Core Gbl Share WS
Grant Samuel Epoch Gbl Eq Shldr Yld Uhgd
Generation Wholesale Global Share
Vanguard International Shares Index
BlackRock Indexed Int Equity Fund
Dimensional Global Large Company Trust
Dimensional Global Core Equity Trust
Dimensional Global Value Trust
Franklin Global Growth W
Walter Scott Global Equity
CFS FC W Inv - CFS W Worldwide Leaders
Schroder Global Value
T. Rowe Price Global Equity
Aberdeen International Equity
Zurich Investments Gbl Thematic Shr
Realindex Wholesale Global Share
Platinum Unhedged Fund
Ironbark GTP Global Equity Thematic
Platinum International Fund
MFS Concentrated Global Equity Trust W
Altrinsic Global Equities Trust
Platinum International Brands Fund
IFP Global Franchise
31/03/2015
31/03/2015
31/12/2014
31/03/2015
31/12/2014
31/01/2015
30/04/2015
28/02/2015
30/04/2015
31/03/2015
30/04/2015
30/04/2015
30/04/2015
31/03/2015
31/12/2014
28/02/2015
31/12/2014
31/03/2015
30/04/2015
30/04/2015
30/04/2015
31/03/2015
30/04/2015
31/03/2015
31/03/2015
30/11/2014
Source: Morningstar DirectSM
11June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
regional exposure over time of Gold medallists Platinum
International and MFS Global Equity Trust, as shown in
Figure 5 below.
Regional exposures for MFS Global Equity Trust have been
historically concentrated in the major developed areas of the
world, and the weightings have remained fairly constant over
time. Platinum International, on the other hand, is best known
for unearthing ideas in all corners of the globe as shown by
the changes in weightings over time to areas such as Japan
and developing Asia. The same can be said when looking at
exposures at the sector level. See Figure 6. MFS Global Equity
Trust’s remain relatively consistent over time, whereas
Platinum International has shown a willingness to
Figure 5: Regional Exposure – MFS Global Equity Trust and Platinum International
2012 2013 2014 2015
100.00
80.00
60.00
40.00
20.00
0.00
Equity Region United Kingdom % (Long Rescaled)
Investment Name: MFS Global Equity Trust
Equity Region Africa/Middle East % (Long Rescaled)
Equity Region Asia dev % (Long Rescaled)
Equity Region Asia emrg % (Long Rescaled)
Equity Region Australasia % (Long Rescaled)
Equity Region Europe dev % (Long Rescaled)
Equity Region Europe emrg % (Long Rescaled)
Equity Region Japan % (Long Rescaled)
Equity Region Latin America % (Long Rescaled)
Equity Region North America % (Long Rescaled)
Stacked Bar
2012 2013 2014 2015
100.00
80.00
60.00
40.00
20.00
0.00
Equity Region United Kingdom % (Long Rescaled)
Investment Name: Platinum International Fund
Equity Region Africa/Middle East % (Long Rescaled)
Equity Region Asia dev % (Long Rescaled)
Equity Region Asia emrg % (Long Rescaled)
Equity Region Australasia % (Long Rescaled)
Equity Region Europe dev % (Long Rescaled)
Equity Region Europe emrg % (Long Rescaled)
Equity Region Japan % (Long Rescaled)
Equity Region Latin America % (Long Rescaled)
Equity Region North America % (Long Rescaled)
Stacked Bar
Source: Morningstar DirectSM
12June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
substantially increase to sectors when it believes them to be
undervalued and typically shunned by a number of global-
equity peers.
Many large-cap global share funds can be considered core
holdings, but it’s important to look through the headline
exposures and understand the nature of the underlying
portfolio and the strategy employed. This process can help
identify how the strategy can best be used and which other
funds it might complement. Diagnostic tools such as the
Morningstar® Portfolio X-Ray® available in Morningstar
Adviser Research CentreTM and Morningstar DirectSM can
help identify specific fund characteristics and whether the
fund is likely to add any diversification benefits.
Figure 6: Sector Exposures – MFS Global Equity Trust and Platinum International
2012 2013 2014 2015
100.00
80.00
60.00
40.00
20.00
0.00
GICS Utilities % (Long Rescaled)
Investment Name: MFS Global Equity Trust
GICS Energy % (Long Rescaled)
GICS Materials % (Long Rescaled)
GICS Industrials % (Long Rescaled)
GICS Consumer Discretionary % (Long Rescaled)
GICS Consumer Staples % (Long Rescaled)
GICS Healthcare % (Long Rescaled)
GICS Financials % (Long Rescaled)
GICS Information Technology % (Long Rescaled)
GICS Telecom Services % (Long Rescaled)
Stacked Bar
Stacked Bar
2012 2013 2014 2015
100.00
80.00
60.00
40.00
20.00
0.00
GICS Utilities % (Long Rescaled)
Investment Name: Platinum International Fund
GICS Energy % (Long Rescaled)
GICS Materials % (Long Rescaled)
GICS Industrials % (Long Rescaled)
GICS Consumer Discretionary % (Long Rescaled)
GICS Consumer Staples % (Long Rescaled)
GICS Healthcare % (Long Rescaled)
GICS Financials % (Long Rescaled)
GICS Information Technology % (Long Rescaled)
GICS Telecom Services % (Long Rescaled)
Source: Morningstar DirectSM
13June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Morningstar Medallists
Investment strategies with Morningstar Analyst Ratings of Gold, Silver, or Bronze are considered to be Morningstar Medallists.
These are the strategies that in our opinion truly stand out and share common traits, including a capable and stable team,
robust processes, and an ability to deliver in a variety of market conditions.
Of the 63 global large-cap strategies we covered in 2014, we designated 38 as Morningstar Medallists (Table 7 below). Three
strategies received the highest-possible Analyst Rating of Gold. Twelve strategies attained Silver, and 23 were rated Bronze.
Table 7: Global Large-Cap Morningstar Medallists
Ticker Fund Manager/Strategy Morningstar Analyst Rating™
15699 Magellan Global Gold
4532 MFS Global Equity Trust Gold
4505 Platinum International Fund Gold
4768 Aberdeen International Equity Silver
14739 Arrowstreet Global Equity Silver
4672 CFS FC W Inv - CFS W Worldwide Leaders Silver
4713 CFS FC W Inv-CFS W Global Resources Silver
16740 Franklin Global Growth W Silver
12160 IFP Global Franchise Silver
19689 MFS Concentrated Global Equity Trust W Silver
40540 Platinum Global Fund Silver
6643 Platinum International Brands Fund Silver
15362 Platinum Unhedged Fund Silver
12329 Walter Scott Global Equity Silver
4951 Zurich Investments Gbl Thematic Shr Silver
19392 Altrinsic Global Equities Trust Bronze
9154 BlackRock Indexed Int Equity Fund Bronze
2951 BT Core Gbl Share WS Bronze
19032 CFS FC W Inv-CFS W Global Soft Commodity Bronze
14573 Dimensional Global Core Equity Trust Bronze
6466 Dimensional Global Large Company Trust Bronze
5841 Dimensional Global Value Trust Bronze
15813 Generation Wholesale Global Share Bronze
16301 Grant Samuel Epoch Gbl Eq Shldr Yld Uhgd Bronze
14109 Ironbark GTP Global Equity Thematic Bronze
IVV iShares Core S&P 500 (AU) Bronze
IOO iShares Global 100 (AU) Bronze
IVE iShares MSCI EAFE (AU) Bronze
16880 Realindex Wholesale Global Share Bronze
15210 Schroder Global Value Bronze
WXHG SPDR S&P World ex Australia Hedged Bronze
WXOZ SPDR® S&P World ex Australia ETF Bronze
14479 T. Rowe Price Global Equity Bronze
VEU Vanguard All-World ex-US Shares ETF Bronze
4489 Vanguard International Shares Index Bronze
VGS Vanguard MSCI Index Intl ETF Bronze
VGAD Vanguard MSCI Index Intl ETF Hedged Bronze
VTS Vanguard US Total Market Shares ETF Bronze
Source: Morningstar DirectSM
14June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Of the six global small-cap strategies we covered, we designated two as Bronze medallists (Table 8 below).
Table 8: Global Small-Cap Morningstar Medallists
Ticker Fund Manager/Strategy Morningstar Analyst Rating™
6467 Dimensional Global Small Company Trust Bronze
15897 Vanguard International Small Companies Bronze
Source: Morningstar DirectSM
Of the 12 global emerging-markets strategies we covered, we rated one Gold, three Silver, and three Bronze (Table 9 below.).
Table 9: Global Emerging-Markets Morningstar Medallists
Ticker Fund Manager/Strategy Morningstar Analyst Rating™
17803 CFS FC W Inv-Glb Emerging Mkts Leaders Gold
11594 Aberdeen Emerging Opportunities Silver
15444 Arrowstreet Emerging Markets Silver
4870 Lazard Emerging Markets Equity I Silver
IEM iShares MSCI Emerging Markets (AU) Bronze
VGE Vanguard FTSE Emerging Markets Shares ETF Bronze
4743 Vanguard Emerging Markets Shares Index Bronze
Source: Morningstar DirectSM
Finally, of the 11 Asian equity strategies we covered, we gave two a Silver rating and four a Bronze rating (Table 10 below).
Table 10: Asian Equities Morningstar Medallists
Ticker Fund Manager/Strategy Morningstar Analyst Rating™
10438 Aberdeen Asian Opportunities Silver
9894 Platinum Asia Silver
4246 BT Asian Share WS Bronze
IAA iShares Asia 50 (AU) Bronze
18337 Macquarie Asia New Stars No.1 Bronze
17615 T. Rowe Price Asia ex-Japan Bronze
Source: Morningstar DirectSM
15June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Appendix 1: Basic Data
Emerging Markets
Ticker Name Inception Date
Morningstar
Analyst Rating
Global Fund Report
Analysis Date
Fund Size
AUD
Fund Size
Date
Indirect Cost
Ratio (ICR)
11594 Aberdeen Emerging Opportunities 1/7/2004 Silver 8/7/2014 1,435,368,733 30/4/2015 1.50
15444 Arrowstreet Emerging Markets 9/7/2007 Silver 9/7/2014 807,133,883 30/4/2015 1.50
16844 CFS FC W Inv-FC W Emerging Markets 19/5/2008 Neutral 29/1/2014 55,362,726 30/4/2015 1.53
17803 CFS FC W Inv-Glb Emerging Mkts Leaders 22/3/2010 Gold 6/8/2014 155,324,181 30/4/2015 1.37
6468 Dimensional Emerging Markets Trust 31/8/2000 Neutral 19/11/2013 434,494,752 30/4/2015 0.71
4870 Lazard Emerging Markets Equity I 22/10/1997 Silver 3/12/2013 1,044,485,311 4/6/2015 1.15
19031 Realindex Wholesale Emerging Markets 11/4/2011 Neutral 19/5/2014 383,894,390 31/3/2015 0.93
4743 Vanguard Emerging Markets Shares Index 31/12/1997 Bronze 9/7/2014 1,360,051,573 30/4/2015 0.56
Asian
Ticker Name Inception Date
Morningstar
Analyst Rating
Global Fund Report
Analysis Date
Fund Size
AUD
Fund Size
Date
Indirect Cost
Ratio (ICR)
10438 Aberdeen Asian Opportunities 20/10/2003 Silver 6/8/2014 788,861,004 30/4/2015 1.18
17155 AMP Capital Asian Equity Gr A 10/12/2008 Neutral 12/2/2014 1,638,038 30/4/2015 1.12
4246 BT Asian Share WS 22/8/1996 Bronze 12/6/2014 209,489,789 30/4/2015 1.00
15001 CFS FC W Inv-FirstChoice W Asian Share 30/4/2007 Neutral 4/12/2013 180,388,620 30/4/2015 1.54
18337 Macquarie Asia New Stars No.1 27/5/2010 Bronze 7/8/2014 293,425,290 30/4/2015 2.56
13432 Nikko AM New Asia 4/11/2005 Neutral 31/1/2014 28,884,659 30/4/2015 1.03
9894 Platinum Asia 3/3/2003 Silver 25/3/2015 6,215,680,000 30/4/2015 1.54
Global Large-caps
Ticker Name Inception Date
Morningstar
Analyst Rating
Global Fund Report
Analysis Date
Fund Size
AUD
Fund Size
Date
Indirect Cost
Ratio (ICR)
4768 Aberdeen International Equity 1/7/1996 Silver 26/1/2015 460,583,201 30/4/2015 0.98
14288 Acadian Wholesale Global Eqty Long Short 20/1/2006 Neutral 30/4/2015 32,391,908 30/4/2015 1.46
12403 Acadian Wholesale Global Equity 16/5/2005 Neutral 30/4/2015 82,303,846 30/4/2015 1.23
4863 Advance International Shr Multi-Blend W 23/3/1998 Neutral 22/3/2015 63,056,391 30/4/2015 1.10
19392 Altrinsic Global Equities Trust 7/11/2011 Bronze 6/5/2015 220,010,000 30/4/2015 1.25
6842 AMP Capital Res Inv Leaders Intl Shr A 20/4/2001 Neutral 12/5/2015 375,840,059 30/4/2015 1.13
15106 AMP Capital Specialist Intl Shr WS 10/10/2005 Neutral 12/5/2015 46,373,013 30/4/2015 1.08
7589 AMP Capital W Global Equity Value 22/11/2001 Neutral 22/4/2015 369,650,459 31/3/2015 0.98
14739 Arrowstreet Global Equity 20/12/2006 Silver 7/4/2015 473,020,849 30/4/2015 1.28
9154 BlackRock Indexed Int Equity Fund 12/12/2001 Bronze 4/2/2015 295,671,447 30/4/2015 0.20
3307 BlackRock Scientific Intl Equity Fund 15/10/1994 Neutral 27/5/2015 927,980,704 30/4/2015 0.89
2951 BT Core Gbl Share WS 6/10/1992 Bronze 3/2/2015 297,374,863 30/4/2015 0.97
17251 Capital International Global Equity 14/4/2009 Neutral 15/3/2015 325,170,070 30/4/2015 0.96
4542 Carnegie WorldWide Equity Trust 20/5/1997 Neutral 4/5/2015 57,032,782 30/4/2015 0.99
4672 CFS FC W Inv - CFS W Worldwide Leaders 1/7/1997 Silver 30/1/2015 260,794,890 30/4/2015 1.17
4713 CFS FC W Inv-CFS W Global Resources 1/5/1997 Silver 18/5/2015 776,719,958 30/4/2015 1.18
19032 CFS FC W Inv-CFS W Global Soft Commodity 11/4/2011 Bronze 18/5/2015 79,159,041 30/4/2015 1.22
11297 CFS FC W Inv-FirstChoice W Global Share 23/4/2002 Neutral 16/4/2015 519,704,218 30/4/2015 1.22
14573 Dimensional Global Core Equity Trust 5/12/2006 Bronze 28/5/2015 1,282,461,592 30/4/2015 0.40
6466 Dimensional Global Large Company Trust 18/8/2000 Bronze 27/5/2015 126,726,265 30/4/2015 0.36
5841 Dimensional Global Value Trust 26/8/1999 Bronze 27/5/2015 759,833,337 30/4/2015 0.45
4897 Fidelity Global Equities 1/4/1998 Neutral 8/3/2015 147,190,001 30/4/2015 1.15
16740 Franklin Global Growth W 1/10/2008 Silver 10/3/2015 76,122,656 30/4/2015 1.13
16June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Ticker Name Inception Date
Morningstar
Analyst Rating
Global Fund Report
Analysis Date
Fund Size
AUD
Fund Size
Date
Indirect Cost
Ratio (ICR)
15813 Generation Wholesale Global Share 3/9/2007 Bronze 30/1/2015 247,035,898 30/4/2015 1.24
4546 Goldman Sachs International WS 30/4/1997 Neutral 12/9/2014 67,967,223 30/4/2015 1.22
16301 Grant Samuel Epoch Gbl Eq Shldr Yld Uhgd 15/5/2008 Bronze 30/3/2015 1,755,529,771 30/4/2015 1.25
12290 GVI Aubrey Global Growth & Income Hedged 23/2/2005 Neutral 10/3/2015 63,400,000 30/4/2015 1.11
18451 GVI Aubrey Global Growth & Income Unhdgd 4/9/2009 Neutral 10/3/2015 5,100,000 30/4/2015 1.11
12160 IFP Global Franchise 17/11/2004 Silver 9/3/2015 1,769,594,453 30/4/2015 1.38
14109 Ironbark GTP Global Equity Thematic 4/10/1996 Bronze 8/3/2015 703,600,001 30/4/2015 0.99
15699 Magellan Global 29/6/2007 Gold 23/2/2015 7,490,651,000 30/4/2015 1.35
19689 MFS Concentrated Global Equity Trust W 30/6/2008 Silver 12/2/2015 74,864,378 30/4/2015 0.90
4532 MFS Global Equity Trust 1/7/1997 Gold 12/2/2015 6,888,932,472 30/4/2015 0.77
4776 MLC Wholesale Global Share 1/1/1998 Neutral 28/5/2015 199,299,751 30/4/2015 1.05
4364 Perpetual Wholesale International Share 21/4/1997 Neutral 26/4/2015 314,134,411 31/3/2015 1.23
40540 Platinum Global Fund 8/9/2014 Silver 30/1/2015 19,240,000 30/4/2015
6643 Platinum International Brands Fund 18/5/2000 Silver 30/1/2015 1,322,640,000 30/4/2015 1.54
4505 Platinum International Fund 30/4/1995 Gold 30/1/2015 11,673,139,999 30/4/2015 1.54
15362 Platinum Unhedged Fund 5/3/2007 Silver 30/1/2015 381,190,000 30/4/2015 1.54
6828 PM Capital Global Companies 28/10/1998 Neutral 7/5/2015 287,490,000 31/5/2015 4.68
16880 Realindex Wholesale Global Share 17/11/2008 Bronze 8/2/2015 1,390,129,708 30/4/2015 0.78
12162 Russell Global Opportunities A 31/12/1997 Neutral 14/4/2015 425,514,957 30/4/2015 1.12
15210 Schroder Global Value 26/7/2005 Bronze 11/2/2015 1,576,110,427 30/4/2015 0.98
14479 T. Rowe Price Global Equity 15/9/2006 Bronze 21/4/2015 1,121,888,951 31/3/2015 1.20
5291 Templeton Global Trust Fund 11/9/1996 Neutral 12/5/2015 587,318,023 30/4/2015 0.85
19679 Threadneedle Global Equity Income Unhdgd 30/11/2012 Neutral 16/4/2015 66,743,391 30/4/2015 1.10
3353 UBS International Share 26/11/1992 Neutral 27/1/2015 311,723,214 31/5/2015 1.00
4489 Vanguard International Shares Index 6/6/1997 Bronze 27/4/2015 8,752,625,324 30/4/2015 0.18
12329 Walter Scott Global Equity 18/3/2005 Silver 30/1/2015 2,027,995,703 30/4/2015 1.28
16734 Wingate Global Equity Fund 1/8/2008 Neutral 2/6/2015 148,897,965 30/4/2015 1.15
4951 Zurich Investments Gbl Thematic Shr 25/7/1997 Silver 12/5/2015 1,297,143,830 30/4/2015 0.98
17504 Zurich Investments Unhedged Global Gr 31/8/2009 Neutral 17/5/2015 346,224,648 30/4/2015 0.98
Global Small-Caps
Ticker Name Inception Date
Morningstar
Analyst Rating
Global Fund Report
Analysis Date
Fund Size
AUD
Fund Size
Date
Indirect Cost
Ratio (ICR)
6467 Dimensional Global Small Company Trust 18/8/2000 Bronze 27/5/2015 210,750,828 30/4/2015 0.65
5812 Goldman Sachs Global Small Companies WS 9/11/1999 Neutral 25/5/2015 97,940,555 30/4/2015 1.43
3876 Hunter Hall Value Growth Trust 2/5/1994 Neutral 27/1/2015 601,299,569 31/3/2015 1.81
10701 Lazard Global Small Cap W 22/10/1997 Neutral 25/2/2015 114,303,666 4/6/2015 1.12
15897 Vanguard International Small Companies 31/10/2007 Bronze 27/4/2015 144,511,976 30/4/2015 0.39
Global Large-caps – cont'd
17June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
ETFs
Ticker Name Inception Date
Morningstar
Analyst Rating
Global Fund Report
Analysis Date
Fund Size
AUD
Fund Size
Date
Management
Costs
IAA iShares Asia 50 (AU) 13/11/2007 Bronze 8/12/2014 304,145,165 30/4/2015 0.50
IZZ iShares China Large-Cap (AU) 5/10/2004 Neutral 8/12/2014 190,499,755 30/4/2015 0.74
IVV iShares Core S&P 500 (AU) 15/5/2000 Bronze 8/12/2014 1,856,453,622 30/4/2015 0.07
IOO iShares Global 100 (AU) 10/10/2007 Bronze 8/12/2014 1,007,361,182 30/4/2015 0.40
IBK iShares MSCI BRIC (AU) 12/11/2007 Neutral 8/12/2014 41,813,296 30/4/2015 0.67
IVE iShares MSCI EAFE (AU) 14/8/2001 Bronze 8/12/2014 249,359,414 30/4/2015 0.33
IEM iShares MSCI Emerging Markets (AU) 7/4/2003 Bronze 8/12/2014 416,490,087 30/4/2015 0.69
WDIV SPDR® S&P Global Dividend ETF 1/11/2013 Neutral 22/4/2015 63,573,761 4/6/2015 0.50
WXOZ SPDR® S&P World ex Australia ETF 18/3/2013 Bronze 22/4/2015 142,462,731 4/6/2015 0.42
VEU Vanguard All-World ex-US Shares ETF 12/5/2009 Bronze 8/12/2014 474,098,260 30/4/2015 0.15
VGE Vanguard FTSE Emerging Markets Shrs ETF 18/11/2013 Bronze 22/4/2015 39,195,920 30/4/2015 0.48
VTS Vanguard US Total Market Shares ETF 12/5/2009 Bronze 8/12/2015 661,313,048 30/4/2015 0.05
LICs
Ticker Name Inception Date
Morningstar
Analyst Rating
Global Fund Report
Analysis Date
Fund Size
AUD
Fund Size
Date
Management
Expense Ratio
HHV Hunter Hall Global Value Ord 19/3/2004 Neutral 19/5/2015 340,347,323 5/6/2015 1.76
TGG Templeton Global Growth Fund Ord 28/5/1987 Neutral 19/5/2015 313,404,676 5/6/2015 1.00
18June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Appendix 2: Portfolio Characteristics
Emerging Markets
Ticker Name Portfolio Date
# of Holdings
(Long)
% Asset in
Top 10 Holdings
Information Ratio
3 Year
Tracking Error 3 Yr
(Mo-End) AUD
11594 Aberdeen Emerging Opportunities 30/4/2015 71 43.44 -0.30 4.85
15444 Arrowstreet Emerging Markets 31/12/2014 301 25.77 0.08 2.84
16844 CFS FC W Inv-FC W Emerging Markets 28/2/2015 270 16.95 0.12 2.36
17803 CFS FC W Inv-Glb Emerging Mkts Leaders 30/4/2015 52 40.91 0.12 5.83
6468 Dimensional Emerging Markets Trust 30/4/2015 1,404 16.86 -0.27 2.93
4870 Lazard Emerging Markets Equity I 31/3/2015 77 28.80 -0.29 4.51
19031 Realindex Wholesale Emerging Markets 28/2/2015 489 28.76 -0.48 4.16
4743 Vanguard Emerging Markets Shares Index 30/4/2015 860 18.62 -0.51 0.61
Asian
Ticker Name Portfolio Date
# of Holdings
(Long)
% Asset in
Top 10 Holdings
Information Ratio
3 Year
Tracking Error 3 Yr
(Mo-End) AUD
10438 Aberdeen Asian Opportunities 30/4/2015 60 50.05 -0.83 4.69
17155 AMP Capital Asian Equity Gr A 31/3/2015 79 33.43 0.24 3.50
4246 BT Asian Share WS 28/2/2015 45 35.43 -0.65 5.00
15001 CFS FC W Inv-FirstChoice W Asian Share 28/2/2015 122 25.66 0.09 3.06
18337 Macquarie Asia New Stars No.1 28/2/2015 74 29.32 1.56 9.07
13432 Nikko AM New Asia 30/4/2015 55 33.45 1.02 3.39
9894 Platinum Asia 31/3/2015 153 23.19 0.95 4.79
Global Large-caps
Ticker Name Portfolio Date
# of Holdings
(Long)
% Asset in
Top 10 Holdings
Information Ratio
3 Year
Tracking Error 3 Yr
(Mo-End) AUD
4768 Aberdeen International Equity 30/4/2015 63 30.94 -1.63 4.50
14288 Acadian Wholesale Global Eqty Long Short 28/2/2015 191 24.16 0.66 3.89
12403 Acadian Wholesale Global Equity 28/2/2015 210 23.51 -0.32 3.01
4863 Advance International Shr Multi-Blend W 31/12/2014 1,231 9.74 -0.64 1.57
19392 Altrinsic Global Equities Trust 30/11/2014 78 25.38 -0.82 3.07
6842 AMP Capital Res Inv Leaders Intl Shr A 31/3/2015 248 27.74 -0.67 1.87
15106 AMP Capital Specialist Intl Shr WS 31/3/2015 827 25.99 0.60 1.20
7589 AMP Capital W Global Equity Value 31/3/2015 114 17.92 1.05 2.73
14739 Arrowstreet Global Equity 31/12/2014 307 15.72 1.91 2.68
9154 BlackRock Indexed Int Equity Fund 31/3/2015 3,173 9.55 0.55 0.33
3307 BlackRock Scientific Intl Equity Fund 30/4/2015 3,109 13.67 0.88 1.94
2951 BT Core Gbl Share WS 28/2/2015 436 13.12 0.48 1.54
17251 Capital International Global Equity 30/4/2015 192 19.43 -0.23 2.47
4542 Carnegie WorldWide Equity Trust 31/12/2014 31 48.54 -0.14 4.45
4672 CFS FC W Inv - CFS W Worldwide Leaders 28/2/2015 30 52.89 -1.08 4.28
4713 CFS FC W Inv-CFS W Global Resources 28/2/2015 79 45.00 -1.21 8.72
19032 CFS FC W Inv-CFS W Global Soft Commodity 28/2/2015 51 50.72 -1.37 6.50
11297 CFS FC W Inv-FirstChoice W Global Share 28/2/2015 1,036 9.51 -0.21 1.89
14573 Dimensional Global Core Equity Trust 30/4/2015 5,692 7.69 0.08 1.70
6466 Dimensional Global Large Company Trust 30/4/2015 1,585 8.63 -0.59 0.60
5841 Dimensional Global Value Trust 30/4/2015 727 18.24 0.30 3.20
4897 Fidelity Global Equities 30/4/2015 103 17.99 -0.57 2.12
16740 Franklin Global Growth W 31/3/2015 43 28.21 -0.32 3.88
19June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Global Large-caps – cont'd
Ticker Name Portfolio Date
# of Holdings
(Long)
% Asset in
Top 10 Holdings
Information Ratio
3 Year
Tracking Error 3 Yr
(Mo-End) AUD
15813 Generation Wholesale Global Share 28/2/2015 54 37.76 0.33 4.61
4546 Goldman Sachs International WS 30/4/2015 35 37.31 0.47 2.76
16301 Grant Samuel Epoch Gbl Eq Shldr Yld Uhgd 30/4/2015 95 17.95 -0.86 4.45
12290 GVI Aubrey Global Growth & Income Hedged 30/4/2015 39 31.49 -0.78 4.83
18451 GVI Aubrey Global Growth & Income Unhdgd 30/4/2015 39 30.70 -0.58 4.58
12160 IFP Global Franchise 31/12/2014 34 40.49 -0.26 4.37
14109 Ironbark GTP Global Equity Thematic 30/4/2015 100 22.16 -0.32 4.70
15699 Magellan Global 31/3/2015 28 50.65 -0.06 3.56
19689 MFS Concentrated Global Equity Trust W 30/4/2015 26 48.41 0.72 3.86
4532 MFS Global Equity Trust 30/4/2015 97 24.71 0.50 2.75
4776 MLC Wholesale Global Share 31/1/2015 1,145 12.33 -0.70 3.84
4364 Perpetual Wholesale International Share 28/2/2015 39 37.11 -1.19 1.93
40540 Platinum Global Fund 31/3/2015 76 23.62
6643 Platinum International Brands Fund 31/3/2015 71 24.58 -1.28 5.58
4505 Platinum International Fund 31/3/2015 194 14.67 -0.22 5.25
15362 Platinum Unhedged Fund 31/3/2015 89 30.56 -0.12 5.55
6828 PM Capital Global Companies 31/3/2015 54 51.80 1.47 7.55
16880 Realindex Wholesale Global Share 30/4/2015 1,548 8.24 -0.61 3.23
12162 Russell Global Opportunities A 31/3/2015 753 12.23 -0.28 1.91
15210 Schroder Global Value 31/1/2015 713 8.49 -0.36 2.39
14479 T. Rowe Price Global Equity 31/3/2015 145 15.21 -0.16 3.65
5291 Templeton Global Trust Fund 31/3/2015 112 16.80 0.55 4.49
19679 Threadneedle Global Equity Income Unhdgd 30/4/2015 86 19.13
3353 UBS International Share 30/4/2015 82 20.94 -0.34 2.18
4489 Vanguard International Shares Index 30/4/2015 1,567 9.70 0.57 0.21
12329 Walter Scott Global Equity 31/12/2014 58 23.98 -1.44 2.77
16734 Wingate Global Equity Fund 31/3/2015 39 34.80 -1.27 4.23
4951 Zurich Investments Gbl Thematic Shr 30/4/2015 109 17.34 -1.13 3.17
17504 Zurich Investments Unhedged Global Gr 30/4/2015 96 16.79 -0.61 3.26
Global Small-Caps
Ticker Name Portfolio Date
# of Holdings
(Long)
% Asset in
Top 10 Holdings
Information Ratio
3 Year
Tracking Error 3 Yr
(Mo-End) AUD
6467 Dimensional Global Small Company Trust 30/4/2015 4,056 1.60 0.41 1.57
5812 Goldman Sachs Global Small Companies WS 30/4/2015 219 9.13 0.19 3.06
3876 Hunter Hall Value Growth Trust 31/3/2015 70 40.59 -0.55 9.01
10701 Lazard Global Small Cap W 31/3/2015 92 16.05 1.64 3.10
15897 Vanguard International Small Companies 30/4/2015 3,870 1.57 0.85 0.52
20June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
ETFs
Ticker Name Portfolio Date
# of Holdings
(Long)
% Asset in
Top 10 Holdings
Information Ratio
3 Year
Tracking Error 3 Yr
(Mo-End) AUD
IAA iShares Asia 50 (AU) 5/6/2015 53 52.74 -0.24 3.37
IZZ iShares China Large-Cap (AU) 5/6/2015 54 57.08 8.68
IVV iShares Core S&P 500 (AU) 5/6/2015 505 17.30 1.44 0.41
IOO iShares Global 100 (AU) 5/6/2015 110 32.67 -1.02 2.46
IBK iShares MSCI BRIC (AU) 5/6/2015 316 30.26 0.09 4.95
IVE iShares MSCI EAFE (AU) 5/6/2015 934 12.09 -0.43 4.74
IEM iShares MSCI Emerging Markets (AU) 5/6/2015 867 18.85 -2.34 0.30
WDIV SPDR® S&P Global Dividend ETF 4/6/2015 121 15.69
WXOZ SPDR® S&P World ex Australia ETF 4/6/2015 1,258 9.47
VEU Vanguard All-World ex-US Shares ETF 30/4/2015 2,463 8.43 -0.89 5.25
VGE Vanguard FTSE Emerging Markets Shrs ETF 30/4/2015 1,017 16.33
VTS Vanguard US Total Market Shares ETF 30/4/2015 3,818 13.93 0.94 0.97
LICs
Ticker Name Portfolio Date
# of Holdings
(Long)
% Asset in
Top 10 Holdings
Information Ratio
3 Year
Tracking Error 3 Yr
(Mo-End) AUD
HHV Hunter Hall Global Value Ord 30/6/2014 61 41.83 -0.48 9.95
TGG Templeton Global Growth Fund Ord 30/6/2014 112 17.43 -0.23 5.12
21June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Appendix 3: People
Emerging Markets
Ticker Name Lead Manager Appointed
11594 Aberdeen Emerging Opportunities Devan Kaloo 2005
15444 Arrowstreet Emerging Markets John Capeci 2006
16844 CFS FC W Inv-FC W Emerging Markets Scott Tully 2008
17803 CFS FC W Inv-Glb Emerging Mkts Leaders Jonathan Asante 2008
6468 Dimensional Emerging Markets Trust Bhanu Singh 2015
4870 Lazard Emerging Markets Equity I James M. Donald 2001
19031 Realindex Wholesale Emerging Markets Raelene de Souza, Daniel Pennell 2011, 2012
4743 Vanguard Emerging Markets Shares Index Rodney Comegys 2015
Asian
Ticker Name Lead Manager Appointed
10438 Aberdeen Asian Opportunities Hugh Young 1992
17155 AMP Capital Asian Equity Gr A Patrick Ho 2014
4246 BT Asian Share WS Samir Mehta 2014
15001 CFS FC W Inv-FirstChoice W Asian Share Scott Tully 2007
18337 Macquarie Asia New Stars No.1 John Bugg, Sam Le Cornu 2008, 2008
13432 Nikko AM New Asia Peter Sartori, Eng-Teck Tan 2005, 2006
9894 Platinum Asia Joseph Lai 2011
Global Large-caps
Ticker Name Lead Manager Appointed
4768 Aberdeen International Equity Stephen Docherty 2003
14288 Acadian Wholesale Global Eqty Long Short Rui Tang; Alexandre Voitenok; Christopher Zani; Adoito Haroon 2011, 2012, 2014, 2014
12403 Acadian Wholesale Global Equity John R. Chisholm; Matthew Rothman; Alexandre Voitenok 2005, 2011, 2012
4863 Advance International Shr Multi-Blend W Mark Vrkic 2007
19392 Altrinsic Global Equities Trust John Hock; John L. Devita; Rehan Chaudhri 2011, 2011, 2011
6842 AMP Capital Res Inv Leaders Intl Shr A Tanya Debakhapouve; Trent Loi 2006, 2012
15106 AMP Capital Specialist Intl Shr WS Tanya Debakhapouve; Trent Loi 2006, 2012
7589 AMP Capital W Global Equity Value Kevin F. Simms; Avi Lavi; Takeo Aso 2001, 2001, 2002
14739 Arrowstreet Global Equity Peter Rathjens 2006
9154 BlackRock Indexed Int Equity Fund Karsten Kumpf 2006
3307 BlackRock Scientific Intl Equity Fund Karsten Kumpf; Michael McCorry 2006, 2010
2951 BT Core Gbl Share WS Jacques A. Friedman 2010
17251 Capital International Global Equity Lionel M. Sauvage; Darcy B. Kopcho; Rudolf M. Staehelin; Eric H. Stern 2009, 2009, 2009, 2011
4542 Carnegie WorldWide Equity Trust Bengt Seger; Bo Knudsen; Lars Wincentsen 2013, 2013, 2013
4672 CFS FC W Inv - CFS W Worldwide Leaders Jonathan Asante; Stephen Deane; Stuart Paul 2013, 2013, 2013
4713 CFS FC W Inv-CFS W Global Resources Todd Warren; Joanne Warner; Tal Lomnitzer 2003, 2007, 2011
19032 CFS FC W Inv-CFS W Global Soft Commodity Renzo Casarotto; Skye Macpherson 2009, 2009
11297 CFS FC W Inv-FirstChoice W Global Share Peter Dymond; Scott Tully; Andrew Howlett 2002, 2002, 2006
14573 Dimensional Global Core Equity Trust Bhanu Singh 2015
6466 Dimensional Global Large Company Trust Bhanu Singh 2015
5841 Dimensional Global Value Trust Bhanu Singh 2015
4897 Fidelity Global Equities Amit Lodha 2010
16740 Franklin Global Growth W Coleen F. Barbeau; Donald G. Huber 2008, 2008
22June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Ticker Name Lead Manager Appointed
15813 Generation Wholesale Global Share Mark Ferguson; Miguel Nogales 2007, 2007
4546 Goldman Sachs International WS Nicolas M. Choumenkovitch 2000
16301 Grant Samuel Epoch Gbl Eq Shldr Yld Uhgd Eric L. Sappenfield; Michael A. Welhoelter; William W. Priest 2008, 2008, 2008
12290 GVI Aubrey Global Growth & Income Hedged Andrew Dalrymple; Sharon Bentley-Hamlyn 2006, 2006
18451 GVI Aubrey Global Growth & Income Unhdgd Andrew Dalrymple; Sharon Bentley-Hamlyn
12160 IFP Global Franchise Hassan Elmasry; Jayson Vowles; Michael Allison; Paras C. Dodhia 2004, 2004, 2004, 2004
14109 Ironbark GTP Global Equity Thematic Oliver S. Kratz 2003
15699 Magellan Global Hamish Douglass 2007
19689 MFS Concentrated Global Equity Trust W David R. Mannheim; Roger M. Morley 2009, 2012
4532 MFS Global Equity Trust David R. Mannheim; Roger M. Morley 1997, 2009
4776 MLC Wholesale Global Share Myooran Mahalingam; Jonathan Armitage 2006, 2011
4364 Perpetual Wholesale International Share John R. Ryan 2010
40540 Platinum Global Fund Kerr Neilson 2014
6643 Platinum International Brands Fund Simon Trevett 2002
4505 Platinum International Fund Kerr Neilson; Andrew Clifford 1995, 2011
15362 Platinum Unhedged Fund Clay Smolinski 2014
6828 PM Capital Global Companies Paul Moore; Ashley Pittard 1998, 1999
16880 Realindex Wholesale Global Share Andrew Francis; Raelene de Souza; Daniel Pennell 2008, 2009, 2012
12162 Russell Global Opportunities A Graeme Allan 2015
15210 Schroder Global Value David Philpotts; Justin Abercrombie 2005, 2005
14479 T. Rowe Price Global Equity R. Scott Berg 2012
5291 Templeton Global Trust Fund Peter Wilmshurst 2000
19679 Threadneedle Global Equity Income Unhdgd Jonathan Crown; Stephen Thornber 2012, 2012
3353 UBS International Share Nicholas Irish; Charles Burbeck 2008, 2013
4489 Vanguard International Shares Index Rodney Comegys 2015
12329 Walter Scott Global Equity Charlie Macquaker; Jane Henderson 2005, 2005
16734 Wingate Global Equity Fund Chad Padowitz 2008
4951 Zurich Investments Gbl Thematic ShrAndrew Norris; Irene T. Cheng; Nicolas Bratt; Steve M. Wreford;
John King2003, 2003, 2003, 2010, 2013
17504 Zurich Investments Unhedged Global Gr Keith Creveling, Brent Puff 2005, 2008
Global Small-Caps
Ticker Name Lead Manager Appointed
6467 Dimensional Global Small Company Trust Bhanu Singh 2015
5812 Goldman Sachs Global Small Companies WS Jamie A. Rome; Simon H. Thomas 1999, 2002
3876 Hunter Hall Value Growth Trust Peter Hall; James McDonald; Jonathan Rabinovitz 1994, 2005, 2012
10701 Lazard Global Small Cap W Edward Rosenfeld 2012
15897 Vanguard International Small Companies Rodney Comegys 2015
Global Large-caps – cont'd
23June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
ETFs
Ticker Name Lead Manager Appointed
IAA iShares Asia 50 (AU) Management Team N. Ap
IZZ iShares China Large-Cap (AU) Management Team N. Ap
IVV iShares Core S&P 500 (AU) Management Team N. Ap
IOO iShares Global 100 (AU) Management Team N. Ap
IBK iShares MSCI BRIC (AU) Management Team N. Ap
IVE iShares MSCI EAFE (AU) Management Team N. Ap
IEM iShares MSCI Emerging Markets (AU) Management Team N. Ap
WDIV SPDR® S&P Global Dividend ETF Management Team N. Ap
WXOZ SPDR® S&P World ex Australia ETF Management Team N. Ap
VEU Vanguard All-World ex-US Shares ETF Management Team N. Ap
VGE Vanguard FTSE Emerging Markets Shrs ETF Management Team N. Ap
VTS Vanguard US Total Market Shares ETF Management Team N. Ap
LICs
Ticker Name Lead Manager Appointed
HHV Hunter Hall Global Value Ord Peter Hall 2004
TGG Templeton Global Growth Fund Ord Peter Wilmshurst 2000
24June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Appendix 4: Style Box Breakdowns
Emerging Markets
Ticker Name
Equity Style
Box (Long)
Market Cap
Giant % (Long)
Market Cap
Large % (Long)
Market Cap
Mid % (Long)
Market Cap
Small % (Long)
Market Cap
Micro % (Long)
11594 Aberdeen Emerging Opportunities 38.10 39.09 11.68 0.20 0.00
15444 Arrowstreet Emerging Markets 45.89 33.00 13.38 0.58 0.03
16844 CFS FC W Inv-FC W Emerging Markets 48.69 27.67 10.73 1.60 0.09
17803 CFS FC W Inv-Glb Emerging Mkts Leaders 37.45 37.18 15.19 0.00 0.00
6468 Dimensional Emerging Markets Trust 28.04 34.91 19.71 9.70 3.00
4870 Lazard Emerging Markets Equity I 45.65 35.03 10.49 0.97 0.00
19031 Realindex Wholesale Emerging Markets 53.76 29.05 7.63 0.51 0.00
4743 Vanguard Emerging Markets Shares Index 46.67 36.29 11.32 0.35 0.00
Asian
Ticker Name
Equity Style
Box (Long)
Market Cap
Giant % (Long)
Market Cap
Large % (Long)
Market Cap
Mid % (Long)
Market Cap
Small % (Long)
Market Cap
Micro % (Long)
10438 Aberdeen Asian Opportunities 47.98 34.44 3.06 0.49 0.00
17155 AMP Capital Asian Equity Gr A 50.45 22.97 15.76 2.01 0.50
4246 BT Asian Share WS 32.16 41.98 17.68 1.32 3.03
15001 CFS FC W Inv-FirstChoice W Asian Share 49.13 32.09 7.46 1.63 0.90
18337 Macquarie Asia New Stars No.1 1.27 34.04 47.53 4.54 0.00
13432 Nikko AM New Asia 44.27 25.78 17.69 5.82 0.00
9894 Platinum Asia 35.19 30.44 13.74 4.32 0.82
Global Large-caps
Ticker Name
Equity Style
Box (Long)
Market Cap
Giant % (Long)
Market Cap
Large % (Long)
Market Cap
Mid % (Long)
Market Cap
Small % (Long)
Market Cap
Micro % (Long)
4768 Aberdeen International Equity 70.67 23.02 0.00 0.00 0.00
14288 Acadian Wholesale Global Eqty Long Short 61.66 11.39 25.31 9.70 17.04
12403 Acadian Wholesale Global Equity 36.26 18.96 21.54 7.98 13.15
4863 Advance International Shr Multi-Blend W 37.72 33.92 16.34 3.65 0.57
19392 Altrinsic Global Equities Trust 43.13 37.82 12.59 2.11 0.00
6842 AMP Capital Res Inv Leaders Intl Shr A 42.01 26.36 13.85 1.29 0.33
15106 AMP Capital Specialist Intl Shr WS 37.05 32.32 14.49 1.74 0.42
7589 AMP Capital W Global Equity Value 35.44 37.67 19.69 3.12 0.00
14739 Arrowstreet Global Equity 38.49 36.61 14.59 2.97 0.25
9154 BlackRock Indexed Int Equity Fund 52.25 33.82 12.77 0.08 0.01
3307 BlackRock Scientific Intl Equity Fund 39.39 44.43 19.62 0.79 0.07
2951 BT Core Gbl Share WS 32.96 40.15 15.88 0.05 0.00
17251 Capital International Global Equity 53.05 26.78 15.09 1.46 0.00
4542 Carnegie WorldWide Equity Trust 86.16 8.87 2.58 0.00 0.00
4672 CFS FC W Inv - CFS W Worldwide Leaders 25.90 40.58 14.79 0.00 0.00
4713 CFS FC W Inv-CFS W Global Resources 36.17 30.44 16.79 10.09 1.76
19032 CFS FC W Inv-CFS W Global Soft Commodity 6.40 49.03 30.17 6.38 3.59
11297 CFS FC W Inv-FirstChoice W Global Share 42.06 31.23 15.73 4.58 1.85
14573 Dimensional Global Core Equity Trust 36.53 25.58 24.27 10.40 2.64
6466 Dimensional Global Large Company Trust 48.17 33.34 17.82 0.14 0.01
5841 Dimensional Global Value Trust 44.89 30.63 22.28 2.01 0.04
4897 Fidelity Global Equities 48.49 24.97 20.80 1.51 0.32
16740 Franklin Global Growth W 16.01 37.40 42.81 0.97 0.00
25June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
Ticker Name
Equity Style
Box (Long)
Market Cap
Giant % (Long)
Market Cap
Large % (Long)
Market Cap
Mid % (Long)
Market Cap
Small % (Long)
Market Cap
Micro % (Long)
15813 Generation Wholesale Global Share 27.55 22.52 41.18 0.97 0.00
4546 Goldman Sachs International WS 36.88 49.42 8.83 0.00 0.00
16301 Grant Samuel Epoch Gbl Eq Shldr Yld Uhgd 46.67 37.03 11.97 1.51 0.00
12290 GVI Aubrey Global Growth & Income Hedged 30.14 35.70 26.90 0.00 0.00
18451 GVI Aubrey Global Growth & Income Unhdgd 28.23 35.52 28.08 0.00 0.00
12160 IFP Global Franchise 53.82 32.07 9.73 0.09 0.00
14109 Ironbark GTP Global Equity Thematic 36.89 35.11 19.53 5.59 0.00
15699 Magellan Global 56.47 28.54 0.00 0.00 0.00
19689 MFS Concentrated Global Equity Trust W 63.48 31.33 3.09 0.00 0.00
4532 MFS Global Equity Trust 45.96 44.71 8.20 0.13 0.00
4776 MLC Wholesale Global Share 49.97 27.36 15.05 1.55 0.00
4364 Perpetual Wholesale International Share 40.07 24.02 18.34 2.83 0.00
40540 Platinum Global Fund 33.92 15.53 13.25 8.03 0.00
6643 Platinum International Brands Fund 12.07 34.83 21.84 10.82 3.73
4505 Platinum International Fund 41.18 21.26 13.93 8.32 0.26
15362 Platinum Unhedged Fund 37.54 24.98 13.41 9.86 1.31
6828 PM Capital Global Companies 53.18 29.63 8.99 10.76 0.97
16880 Realindex Wholesale Global Share 55.66 31.40 9.44 0.42 0.08
12162 Russell Global Opportunities A 44.49 30.52 13.24 1.35 0.00
15210 Schroder Global Value 31.26 29.76 24.73 9.49 1.53
14479 T. Rowe Price Global Equity 35.16 40.24 14.27 0.00 0.00
5291 Templeton Global Trust Fund 52.53 30.70 7.61 3.88 0.01
19679 Threadneedle Global Equity Income Unhdgd 33.32 42.53 15.57 4.15 0.00
3353 UBS International Share 54.92 28.49 11.42 0.49 1.01
4489 Vanguard International Shares Index 52.55 33.74 12.90 0.05 0.01
12329 Walter Scott Global Equity 67.63 22.99 6.02 0.05 0.00
16734 Wingate Global Equity Fund 28.57 17.19 4.39 2.83 0.00
4951 Zurich Investments Gbl Thematic Shr 57.33 32.03 4.47 0.00 0.00
17504 Zurich Investments Unhedged Global Gr 31.88 42.61 21.11 0.00 0.00
Global Small-Caps
Ticker Name
Equity Style
Box (Long)
Market Cap
Giant % (Long)
Market Cap
Large % (Long)
Market Cap
Mid % (Long)
Market Cap
Small % (Long)
Market Cap
Micro % (Long)
6467 Dimensional Global Small Company Trust 0.00 0.38 40.99 45.37 12.78
5812 Goldman Sachs Global Small Companies WS 0.00 0.00 23.12 35.41 40.18
3876 Hunter Hall Value Growth Trust 11.48 10.22 22.01 29.99 11.80
10701 Lazard Global Small Cap W 0.00 1.05 44.47 39.64 9.87
15897 Vanguard International Small Companies 0.00 0.46 50.16 39.52 9.38
Global Large-caps – cont'd
26June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
ETFs
Ticker Name
Equity Style
Box (Long)
Market Cap
Giant % (Long)
Market Cap
Large % (Long)
Market Cap
Mid % (Long)
Market Cap
Small % (Long)
Market Cap
Micro % (Long)
IAA iShares Asia 50 (AU) 95.18 2.95 0.00 0.00 0.00
IZZ iShares China Large-Cap (AU) 93.31 0.72 0.00 0.00 0.00
IVV iShares Core S&P 500 (AU) 51.43 35.07 12.14 0.09 0.00
IOO iShares Global 100 (AU) 85.47 10.59 0.00 0.00 0.00
IBK iShares MSCI BRIC (AU) 62.26 25.95 3.25 0.00 0.42
IVE iShares MSCI EAFE (AU) 55.22 31.93 8.58 0.00 0.01
IEM iShares MSCI Emerging Markets (AU) 47.63 30.59 10.31 0.41 0.00
WDIV SPDR® S&P Global Dividend ETF 17.73 30.35 37.08 8.55 3.10
WXOZ SPDR® S&P World ex Australia ETF 52.34 35.07 9.85 0.24 0.06
VEU Vanguard All-World ex-US Shares ETF 49.79 31.78 11.46 0.32 0.01
VGE Vanguard FTSE Emerging Markets Shrs ETF 43.55 33.87 11.69 1.31 0.39
VTS Vanguard US Total Market Shares ETF 41.43 29.43 18.91 6.37 2.59
LICs
Ticker Name
Equity Style
Box (Long)
Market Cap
Giant % (Long)
Market Cap
Large % (Long)
Market Cap
Mid % (Long)
Market Cap
Small % (Long)
Market Cap
Micro % (Long)
HHV Hunter Hall Global Value Ord 11.19 7.10 15.35 41.17 9.48
TGG Templeton Global Growth Fund Ord 53.33 31.23 8.14 3.30 1.15
27June 2015 Global Equities Sector Wrap-Up
Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).
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