mlc investment management annual investor review appendix: wholesale 30 june 2011
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MLC Investment Management Annual Investor Review Appendix: Wholesale 30 June 2011. General advice warning and disclaimer. This information has been provided by MLC Limited (ABN 90 000 000 402) a member of the National Group, 105–153 Miller Street, North Sydney 2060. - PowerPoint PPT PresentationTRANSCRIPT
MLC Investment ManagementAnnual Investor Review
Appendix: Wholesale
30 June 2011
22
General advice warning and disclaimer
This information has been provided by MLC Limited (ABN 90 000 000 402) a member of the National Group, 105–153 Miller Street, North Sydney 2060.
Any opinions expressed in this communication constitute our judgement at the time of issue and are subject to change. We believe that the information contained in this communication is correct and that any estimates, opinions, conclusions or recommendations are reasonably held or made as at the time of compilation. However, no warranty is made as to their accuracy or reliability (which may change without notice) or other information contained in this communication.
Past performance is not indicative of future performance. The value of an investment may rise or fall with the changes in the market. Please note that all performance reported is before management fees and taxes, unless otherwise stated.
The specialist investment managers are current as at the date this communication was prepared. Investment managers are regularly reviewed and may be appointed or removed at any time without prior notice to you.
This communication contains general information and may constitute general advice. Any advice in this communication has been prepared without taking account of individual objectives, financial situation or needs. It should not be relied upon as a substitute for financial or other specialist advice.
Before making any decisions on the basis of this communication, you should consider the appropriateness of its content having regard to your particular investment objectives, financial situation or individual needs. You should obtain a Product Disclosure Statement or other disclosure document relating to any financial product issued by MLC Investments Limited (ABN 30 002 641 661 [include AFSL for PDSs/FSGs/Annual Reports]) and consider it before making any decision about whether to acquire or continue to hold the product. A copy of the Product Disclosure Statement or other disclosure document is available upon request by phoning the MLC call centre on 132 652 or on our website at mlc.com.au.
33
Table of Contents
Topic Slides
MLC Horizon 3 Conservative Growth Portfolio 4
MLC Horizon 5 Growth Portfolio 7
MLC Horizon 6 Share Portfolio 10
MLC Australian Share Fund 13
MLC Global Share Fund 14
MLC Global Property Fund 15
MLC Property Securities Fund 16
MLC Diversified Debt Fund 17
MLC IncomeBuilderTM Fund 20
44
MLC Horizon 3 Conservative Growth Portfolio – total returns
Source: MLC Investment Management
• 5 year returns have always been positive• 5 year returns have always been positive
Historical Absolute PerformanceMLC Wholesale Horizon 3 Conservative Growth Portfolio
(after taking into account fees)
-10%
-5%
0%
5%
10%
15%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Re
turn
% p
.a.
1 Year Ended 30 June 5 Years Ended 30 June
55
MLC Horizon 3 strategy– asset class contribution
Source: MLC Investment Management
Contribution to Total Return by Asset ClassMLC Wholesale Horizon 3 Conservative Growth Portfolio
(before taking into account fees)
-2
-1
-1
0
1
1
2
2
3
3
4
4
Australian Shares Global Shares -Hedged
Global Shares -Unhedged
Global PropertySecurities
LTAR Debt Securities
Ret
urn
Co
ntr
ibu
tio
n %
(an
nu
alis
ed f
or
per
iod
s g
reat
er t
han
1 y
ear)
3 months to Jun-2011 1 year to Jun-2011 3 years to Jun-2011 5 years to Jun-2011
66
MLC Wholesale Horizon 3 Conservative Gr PortfolioComparison with the Mercer Wholesale-Moderate Growth Universe
Performance before tax and after fees for periods ended June 2011Rates of Return(%)
13
9
5
1
-3
3 Months (% ) 1 Year (% ) 3 Years (% pa) 5 Years (% pa) 7 Years (% pa)
MLC0398AU -0.6 (14) 8.3 (9) 2.7 (10) 2.9 (7) 5.4 (7)
95th Percentile 0.1 12.4 4.8 5.0 6.7Upper Quartile -0.3 9.1 3.9 3.3 5.9
Median -0.4 8.5 3.2 2.8 5.6Lower Quartile -0.5 8.0 2.5 2.4 5.25th Percentile -0.9 7.0 1.7 2.1 4.8
Number of Funds 17 16 16 15 11
Data Source: Morningstar and Lipper, A Thomson Reuters Company
MLC Horizon 3 Conservative Growth Portfolio – peer relative performance
Q3
Q2Q3
Q3
Q4
77
MLC Horizon 5 Growth Portfolio – total returns
Source: MLC Investment Management
• 5 year returns have always been positive• 5 year returns have always been positive
Historical Absolute PerformanceMLC Wholesale Horizon 5 Growth Portfolio
(after taking into account fees)
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Re
turn
% p
.a.
1 Year Ended 30 June 5 Years Ended 30 June
88
MLC Horizon 5 strategy– asset class contribution
Source: MLC Investment Management
Contribution to Total Return by Asset ClassMLC Wholesale Horizon 5 Growth Portfolio
(before taking into account fees)
-2
-1
0
1
2
3
4
5
Australian Shares Global Shares -Hedged
Global Shares -Unhedged
Global PropertySecurities
LTAR Debt Securities
Ret
urn
Co
ntr
ibu
tio
n %
(an
nu
alis
ed
fo
r p
erio
ds
gre
ate
r th
an
1 y
ea
r)
3 months to Jun-2011 1 year to Jun-2011 3 years to Jun-2011 5 years to Jun-2011
99
MLC Wholesale Horizon 5 Growth PortfolioComparison with the Mercer Wholesale-High Growth Universe
Performance before tax and after fees for periods ended June 2011Rates of Return(%)
13
9
5
1
-3
3 Months (% ) 1 Year (% ) 3 Years (% pa) 5 Years (% pa) 7 Years (% pa)
MLC0265AU -2.3 (15) 9.8 (12) 0.0 (12) 0.6 (8) 4.8 (6)
95th Percentile -1.3 12.6 1.7 2.7 6.8Upper Quartile -1.7 10.7 0.8 1.2 5.4
Median -2.1 10.2 0.3 0.6 5.0Lower Quartile -2.3 9.1 -1.0 0.2 4.45th Percentile -2.4 8.4 -1.5 -0.5 4.0
Number of Funds 20 19 19 15 9
Data Source: Morningstar and Lipper, A Thomson Reuters Company
MLC Horizon 5 Growth Portfolio – peer relative performance
Q4
Q3
Q3Q2
Q3
1010
MLC Horizon 6 Share Portfolio – total returns
Source: MLC Investment Management
Historical Absolute PerformanceMLC Wholesale Horizon 6 Share Portfolio
(after taking into account fees)
-30%
-20%
-10%
0%
10%
20%
30%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Ret
urn
% p
.a.
1 Year Ended 30 June 5 Years Ended 30 June
1111
MLC Horizon 6 strategy– asset class contribution
Source: MLC Investment Management
Contribution to Total Return by Asset ClassMLC Wholesale Horizon 6 Share Portfolio
(before taking into account fees)
-3
-2
-1
0
1
2
3
4
5
6
7
8
Australian Shares Global Shares - Hedged Global Shares - Unhedged LTAR
Ret
urn
Co
ntr
ibu
tio
n %
(an
nu
alis
ed
fo
r p
erio
ds
gre
ate
r th
an
1 y
ea
r)
3 months to Jun-2011 1 year to Jun-2011 3 years to Jun-2011 5 years to Jun-2011
1212
MLC Wholesale Horizon 6 Share PortfolioComparison with the Mercer Wholesale-All Growth Universe
Performance before tax and after fees for periods ended June 2011Rates of Return(%)
13
8
3
-2
-7
3 Months (% ) 1 Year (% ) 3 Years (% pa) 5 Years (% pa) 7 Years (% pa)
MLC0397AU -3.0 (8) 10.5 (9) -1.2 (13) 0.0 (6) 4.7 (4)
95th Percentile -0.6 12.6 3.1 2.8 5.7Upper Quartile -2.5 12.1 0.7 0.2 4.9
Median -3.0 10.2 -0.3 -0.2 4.6Lower Quartile -3.5 7.9 -1.7 -0.7 3.75th Percentile -4.2 5.3 -3.0 -2.5 2.3
Number of Funds 18 18 18 16 10
Data Source: Morningstar and Lipper, A Thomson Reuters Company
MLC Horizon 6 Share Portfolio – peer relative performance
Q2
Q2
Q2
Q3
Q2
1313
MLC Australian Share Fund – total returns
Source: MLC Investment Management
• 5 year returns have always been positive• 5 year returns have always been positive
Historical Absolute PerformanceMLC Wholesale Australian Share Fund
(after taking into account fees)
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Ret
urn
% p
.a.
1 Year Ended 30 June 5 Years Ended 30 June
1414
MLC Global Share Fund – total returns
Source: MLC Investment Management
Historical Absolute PerformanceMLC Wholesale Global Share Fund
(after taking into account fees)
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Re
turn
% p
.a.
1 Year Ended 30 June 5 Years Ended 30 June
1515
MLC Global Property Fund – total returns
Source: MLC Investment Management
Historical Absolute PerformanceMLC Wholesale Global Property Fund
(after taking into account fees)
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
2008 2009 2010 2011
Re
turn
% p
.a.
1 Year Ended 30 June
1616
MLC Property Securities Fund – total returns
Source: MLC Investment Management
Historical Absolute PerformanceMLC Wholesale Property Securities Fund
(after taking into account fees)
-40%
-30%
-20%
-10%
0%
10%
20%
30%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Re
turn
% p
.a.
1 Year Ended 30 June 5 Years Ended 30 June
1717
MLC Diversified Debt Fund – total returns
Source: MLC Investment Management
Historical Absolute Performance MLC Wholesale Diversified Debt Fund
(after taking into account fees)
0%
2%
4%
6%
8%
10%
12%
2009 2010 2011
Ret
urn
% p
.a.
1 Year Ended 30 June
1818
MLC Diversified Debt Fund – asset class contribution
Source: MLC Investment Management
Contribution to Total Return by Asset ClassMLC Wholesale Diversified Debt Fund(before taking into account fees and tax)
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
Australian Bonds Global GovernmentBonds
Global Non-Government Bonds
Global Multi-SectorBonds
Global High YieldBonds
Global Bank Loans Global Mortgages
Ret
urn
Co
ntr
ibu
tio
n %
(an
nu
alis
ed f
or
per
iod
s g
reat
er t
han
1 y
ear)
Quarter to Jun-11 1 Year to Jun-11 3 years to Jun-11
1919
MLC Diversified Debt Fund - manager contribution
Source: MLC Investment Management
Manager Absolute PerformanceWholesale Diversified Debt Fund
(before taking into account fees)
0%
5%
10%
15%
20%
Antares (all-maturities)
UBS (all-maturities)
GoldmanSachs (all-maturities)
WellingtonManagement
(all-maturities)
Rogge (all-maturities)
Amundi FranklinTempleton
PIMCO W. R. Huff Oaktree ShenkmanCapital
Stone Tower
AustralianBonds
AustralianBonds
GlobalGovernment
Bonds
Global Non-Government
Bonds
Global Non-Government
Bonds
GlobalMulti-
SectorBonds
GlobalMulti-
SectorBonds
GlobalMulti-
SectorBonds
GlobalHigh Yield
Bonds
GlobalHigh Yield
Bonds
GlobalBank
Loans
GlobalMortgages
Ma
na
ger
Per
form
an
ce
%(a
nn
ual
ised
fo
r p
erio
ds
gre
ater
th
an 1
yea
r)
Quarter to Jun-11 1 Year to Jun-11 3 years to Jun-11
2020
MLC IncomeBuilderTM Fund – distribution performance
Source: MLC Investment Management
MLC IncomeBuilderTM Investment Trust (Wholesale) Distribution Analysis
2.30 2.683.32
4.21 4.80
6.417.10 7.52 7.69 7.16
5.736.62
-
0.58
2.27
3.97
3.78
3.01
0.32
0.13
0.56
2.37 1.94
3.96
0.300.77
0.900.250.00
0.00
-
--
0.00
0.01
0.040.01
-
2
4
6
8
10
12
14
16
18
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Financial Year End 30 June
Cents
per
unit
Underlying IncomeTaxable Capital GainsBuybacksConcessional (non-taxed) Capital Gains
2121
MLC IncomeBuilder™ Fund - The dividend environment is improving
Company Latest year dividend declared (per share)
Change on last years corresponding div.
Commonwealth Bank $3.02 28%
ANZ Banking Group $1.26 24%
Westpac $1.39 20%
Wesfarmers $1.35 17%
Coca-Cola Amatil $0.485 11%
Woolworths $1.19 9%
National Australia Bank $1.52 4%
Brambles $0.255 2%
AMP $0.30 0%
Fosters Group $0.2725 0%
As at 30th June 2011Source: MLC Investment Management
2222
MLC IncomeBuilder ™ Fund – manager contribution
Source: MLC Investment Management
Manager Performance in Excess of the Index
IncomeBuilderTM Strategy(before taking into account fees and tax)
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
Vanguard Maple-Brown Abbott IncomeBuilderTM
Exc
es
s R
etu
rn v
s S
&P
/AS
X 2
00
All
In
du
str
ials
Ind
ex
(an
nu
alis
ed f
or
per
iod
s g
reat
er t
han
1 y
ear)
Quarter to Jun-11 1 Year to Jun-11 3 years to Jun-11 5 Years to Jun-11