CLIENT INVESTMENT UPDATE
Superannuation Products
31 December 2014
GENERAL ADVICE WARNING AND DISCLAIMER
The information in this presentation has been provided by MLC Limited (ABN 90 000 000 402) a member of the NAB
Group of Companies, 105–153 Miller Street, North Sydney 2060 for advisers only. No company in the NAB group, nor
MLC limited guarantees the capital value, payment of income or performance of any fund referred to in this
presentation.
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. Any
projection or forward looking statement in this report is provided for information purposes only and no representation is
made as to the accuracy or reasonableness of such projection or that it will be met.
Past performance is not a reliable indicator of future performance. The value of an investment may rise or fall with the
changes in the market. Returns are not guaranteed and actual returns may vary from target returns described in this
document. Please note that all performance reported is before management fees and taxes, unless otherwise stated.
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 Nominees
Pty Ltd (ABN 93 002 814 959) as trustee of The Universal Super Scheme (ABN 44 928 361 101), 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.
THIS INFORMATION HAS BEEN PROVIDED BY MLC LIMITED (ABN 90 000 000 402) MEMBERS OF THE
2
TABLE OF CONTENTS
1.
Market performance
2.
Investment Futures Framework
3.
Activity this quarter
4.
More analysis of returns
5.
Where to find client tools
3
1.
MARKET PERFORMANCE
What happened
Our insights
While volatility has been higher, share markets have largely
defied underlying risks including geopolitical concerns and
end to US QE. Higher yielding stocks continued to appeal to
investors as bond yields fell to historic lows in major world
markets.
AUD weaker this quarter due to declining While positive for portfolio returns, the weaker AUD
terms of trade and a strong US economy. weakens the potential diversification benefit of foreign
Unhedged global assets were boosted by the currency exposure. As the potential benefit still outweighs
falling AUD. Our foreign currency exposure
the risks, our portfolios remain overweight foreign
position worked well.
currencies.
Economic & geopolitical uncertainty
remain elevated.
Oil prices have fallen significantly, but there is potential for
Rising recession risks in the eurozone.
escalation of Middle East & Russian tensions. Lower oil
Existing geopolitical issues rumble on
prices are positive for consumers but reduce US domestic
(eg rising popularity of extremist parties
investment. Australian shares and the AUD remain very
in the eurozone, the Ukraine crisis and
vulnerable to adverse developments in China.
radical Islamist forces in Iraq).
Very solid returns over the quarter and
year to December.
Australian and global REITs were the standout performers as lower bond yields made
REIT yields more attractive.
US quantitative easing (QE) has ended:
no new asset purchases, but interest rate
increases remain some way off. European
Central Bank set to adopt its own form of QE.
It’s unclear whether very loose monetary policy will continue
to boost share markets. Risk remains elevated and many
assets are at least fully priced. Future return potential for all
major asset classes is lower than average.
4
4
1.
MARKET PERFORMANCE
All asset classes delivered positive returns over 1, 3 and 5 years.
5
MARKET UPDATE
1.
A robust year for most global share markets but returns were modest
compared to earlier in the year. Australia’s return was due largely to
industrials, as resource and energy companies lost ground. China’s shares
benefitted from a surprise interest rate cut in November.
Market
1 year return to
30 June 2014
1 year return to 31 December
2014
S&P500 (USA)
22.0%
11.4%
DAX (Germany)
23.5%
2.7%
CAC (France)
18.3%
-0.5%
Nikkei (Japan)
10.9%
7.1%
Hang Seng (Hong Kong)
11.5%
1.3%
Shanghai (China)
3.5%
52.9%
FT100 (UK)
8.5%
-2.7%
S&P/ASX200 Accumulation
17.4%
5.6%
All Industrials
17.3%
11.4%
All Resources
17.8%
-16.4%
Source: Iress
6
6
MARKET UPDATE
1.
The US QE program has stopped buying new assets. The Bank of Japan’s QE program and
expected QE by the European Central Bank may offset US policy moderation.
Quantitative easing in perspective II
9
Monetary base as a % of total OECD GDP
8
US
7
Japan
6
5
Eurozone
4
UK
3
2
Switz
1
0
Q1 2005
Q1 2007
Q1 2009
Q1 2011
Q1 2013
Source: Datastream, MLC
7
1.
MARKET UPDATE
Oil prices were driven down sharply by weakening global demand and rising non-OPEC
supply (by the US) as Saudi Arabia finally lost patience with OPEC’s lack of supply
discipline.
15000
Crude oil production (bls/day)
14000
13000
160
West Texas Crude (US$/bl)
140
Saudi Arabia
US
12000
120
100
11000
80
10000
9000
60
8000
40
7000
20
6000
Q1 2006 Q1 2008 Q1 2010 Q1 2012 Q1 2014
0
Jan-05
Jan-07
Jan-09
Jan-11
Jan-13
Jan-15
Sources: Datastream, US Department of Energy, MLC
8
1.
MARKET UPDATE
The falling oil price and sanctions drove Russia’s share market and currency
down. In September, we instructed our emerging markets strategy manager to
sell all Russian share and bond investments as the potential downside far
exceeded any upside.
120
Total return in US dollars. 31 Dec 2013 equals 100
0.035
US dollars
110
100
0.03
90
80
0.025
RUB/USD
70
60
50
40
0.02
Russia
All Country World Index
0.015
30
20
Dec-13
Mar-14
Source: Datastream
Jun-14
Sep-14
Dec-14
0.01
Dec-13
Mar-14
Jun-14
Sep-14
Dec-14
9
9
1.
MARKET UPDATE
Australia’s terms of trade have declined, reflecting lower resource commodity prices, and
the AUD has weakened. We consider the AUD overvalued and vulnerable to further falls.
130
Australia: terms of trade index
120
1.1
USD
OECD PPP Estimate
1.0
AUD/USD Spot rate
110
0.9
100
90
0.8
80
0.7
70
0.6
60
50
40
Q1 1989 Q1 1995 Q1 2001 Q1 2007 Q1 2013
Source: Datastream
0.5
0.4
Q1 1984
Q1 1993
Q1 2002
Q1 2011
10
10
1.
MARKET PERFORMANCE
Iron ore accounts for around a fifth of Australia’s exports. Prices have fallen to a
five year low. The change in Australia’s fortunes have driven the share market
lower and detracted significantly from national income.
25
Iron ore as % of total exports*
200
Iron ore US$/t
180
20
160
140
15
120
10
100
80
5
60
0
Q2 1996
Q2 2002
Q2 2008
Q2 2014
Source: Datastream. *Total exports of goods and services.
40
Jul-09
Jan-11
Jul-12
Jan-14
11
11
MARKET PERFORMANCE
1.
In the eurozone growth has slowed. Inflation remains worryingly low and political concerns
have re-emerged in Greece. January elections appear likely to result in a new anti-austerity
government that will seek to further restructure Greece’s debt.
5
Eurozone Annual inflation rate (%)
CPI ex food, alcohol,
energy and tobacco
4
CPI All items
3
2
1
2400
11
2000
10
1800
9
1600
8
1400
7
1200
6
1000
Feb-08
Source: Datastream.
Feb-11
Feb-14
12
2200
0
-1
Feb-05
%
Greek shares: total return index
800
Dec-13
Athens Composite share price
index (lhs)
Greek govt 10yr yields (rhs)
5
4
Jun-14
Dec-14
12
INVESTMENT FUTURES FRAMEWORK
2.
Our tailored scenarios continue to capture the primary set
of distinct possible futures
Higher
Three speed global economy (China soft landing)
(Mild) inflationary resolution
Developed market austerity, recession, stagnation
Early re-leveraging
Extended quantitative easing
Probability
Sovereign yield re-rating
Reform
China hard landing
Inflation shock
Lower
Two speed recovery
Extended risk aversion
One speed slow growth world
Stagflation
For a description of each scenario, please refer to ‘MLC’s scenario insights & portfolio positioning’, December 2014.
13
2.
INVESTMENT FUTURES FRAMEWORK
− MLC Inflation Plus positions
Potential risk or
opportunity
Change in MLC Inflation Plus portfolios
this quarter
Risk of a market
correction
In recent quarters, several factors have
combined to raise the risk of a further market
correction. These include the prospect of less
aggressive monetary policy settings in the US,
slowing global growth and the possibly of
renewed recession in Europe. A worrying mix
of other geopolitical factors also added to
market concerns. While none of these factors is
new, the risk of each has intensified.
Because of these factors, and stretched market
valuations, the portfolio had been positioned
increasingly defensively. It remained
defensively positioned at the end of the
December quarter.
Risk of an
eventual rise in
inflation
We consider the risk of investing in bank loans
has increased recently due to continued growth
in issuance of lower quality loans. The fall in
the AUD has also tended to increase the level
of risk in the portfolio.
To assist manage exposure to these risks in
the portfolio, we made a small reduction in the
allocation to global bank loans this quarter, and
increased the allocation to cash.
Unchanged positions:
• Higher foreign currency exposure
• Defensive global shares (instead of broad market global shares)
• No direct allocation to long duration traditional bonds
MLC INFLATION PLUS − MODERATE
ASSET ALLOCATION AT 31 DECEMBER 2014
14
2.
MLC INFLATION PLUS PORTFOLIOS
OBJECTIVE-DRIVEN ALLOCATIONS
Target asset allocation: MLC Super Inflation Plus portfolios
MLC Inflation Plus:
Conservative
Moderate
Assertive (LTAR)
3.5%
7%
8%
-
-
2%
0.5%
1%
-
Defensive global shares (unhedged)
8%
16%
30%
Global private assets (hedged)
2%
4%
7%
Emerging markets strategy (unhedged)
3%
4%
7%
-
-
-
Enhanced cash
28%
18%
4%
Australian non-government bonds
27%
18%
2%
Australian inflation-linked bonds
12%
9%
6%
Global bank loans
2%
3%
-
-
2%
2%
Low correlation strategy
5%
6%
15%
Multi-asset real return strategy (hedged)
9%
12%
17%
-
-
-
100%
100%
100%
Australian shares
Global shares (unhedged)
Global shares (hedged)
Global property securities (hedged)
Insurance-related investments (hedged)
Borrowings
Total
Source: MLC as at 31 December 2014
15
2.
INVESTMENT FUTURES FRAMEWORK
− MLC Horizon 4 Balanced positions
Position relative
to benchmark
Underweight to
growth assets
Underweight to
interest rate risk
Overweight to
foreign
currencies
Why we have position
The risk of a further market correction has
increased due to the prospect of more normal
monetary policy settings in the US, slowing
global growth and the possibly of renewed
recession in Europe, and a worrying mix of
other geopolitical factors. While these factors
aren’t new, their risk has intensified. Because
of these factors, along with stretched market
valuations, the portfolio continued to be
defensively positioned.
While government bond yields (interest rates
on bonds) could decline from their already low
levels, the potential for further falls is less than
the potential for yields to rise.
Global share markets and the Australian dollar
(AUD) tend to move in the same direction. By
having an exposure to foreign currencies (for
example, not hedging some of our overseas
assets to the AUD) we can help insulate the
portfolio against losses when share markets fall
or are volatile. This position worked well this
quarter.
MLC HORIZON 4 – BALANCED
ASSET ALLOCATION AT 31 DECEMBER 2014
1%1%
3% 3%
2%
11%
29%
7%
2%
2%
1%
6%
6%
4% 1%
22%
Australian shares (29%)
Global shares (unhedged) (22%)
Defensive global shares (unhedged) (1%)
Global property securities (hedged) (4%)
Global private assets (hedged) (6%)
Multi-asset real return strategy (hedged) (6%)
Emerging markets strategy (unhedged) (1%)
Low correlation strategy (2%)
Cash (2%)
Australian inflation-linked bonds (7%)
Australian bonds (11%)
Global government bonds (2%)
Global non-government bonds (3%)
Global multi-sector bonds (3%)
Global high yield bonds (1%)
Global bank loans (1%)
16
2.
INVESTMENT FUTURES FRAMEWORK
− MLC Index Plus Balanced positions
Position relative
to benchmark
Underweight to
growth assets
Why we have position
The risk of a further market correction has
increased due to the prospect of more normal
monetary policy settings in the US, slowing
global growth and the possibly of renewed
recession in Europe, and a worrying mix of
other geopolitical factors. While these factors
aren’t new, their risk has intensified. Because of
these factors, along with stretched market
valuations, the portfolio continued to be
defensively positioned.
MLC INDEX PLUS – BALANCED
ASSET ALLOCATION AT 31 DECEMBER 2014
3% 4%
2%
13%
31%
7%
1%
4%
Underweight to
interest rate risk
Overweight to
foreign
currencies
While government bond yields (interest rates on
bonds) could decline from their already low
levels, the potential for further falls is less than
the potential for yields to rise.
Global share markets and the Australian dollar
(AUD) tend to move in the same direction. By
having an exposure to foreign currencies (for
example, not hedging some of our overseas
assets to the AUD) we can help insulate the
portfolio against losses when share markets fall.
This position worked well this quarter.
11%
24%
Australian shares (31%)
Global shares (unhedged) (24%)
Global shares (hedged) (11%)
Global property securities (hedged) (4%)
Cash (1%)
Australian inflation-linked bonds (7%)
Australian bonds (13%)
Global government bonds (2%)
Global non-government bonds (3%)
Global multi-sector bonds (4%)
17
Source:MLC
2.
INVESTMENT FUTURES FRAMEWORK
− Potential returns
Falling bond yields, and share price rises ahead of the underlying
fundamentals, reduce future return potential and increase risk.
40 SCENARIO SET PROBABILITY WEIGHTED REAL RETURNS (DEC 2014)
(5 YEARS, 0% TAX WITH FRANKING CREDITS, PRE-FEES, PRE-ALPHA)
18
ACTIVITY THIS QUARTER
– Changes to MLC Inflation Plus
asset allocations
3.
No changes to Assertive. Decrease in global bank loans (hedged) for Moderate and
Conservative. This slightly increases the defensive positioning of these portfolios.
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
-0.5%
-1.0%
-1.5%
-2.0%
-2.5%
Cash
MLC Inflation Plus - Conservative
Source: MLC
Global bank loans (hedged)
MLC Inflation Plus - Moderate
19
19
4.
MORE ANALYSIS OF RETURNS
A. MLC Inflation Plus portfolio returns
Relative to benchmark
Contributors to returns
B. MLC Horizon portfolio returns
Contributors to returns
Benchmark indices
Relative to peers
C. MLC Index Plus portfolio returns
Contributors to returns
D. Asset class fund returns
Relative to benchmark
20
4.
A. MLC INFLATION PLUS
− Returns relative to benchmark
MasterKey Super Fundamentals
Performance to 31 Dec 2014
3 months
%
1 year
% pa
3 years
% pa
5 years
% pa
7 years
% pa
0.5
2.0
2.3
2.5
2.6
Net of fees and tax
2.0
-
-
-
-
Before fees and tax
2.7
-
-
-
-
Return above inflation - aims to achieve 3.5%pa above inflation (before
fees and tax) over 3 year periods
2.2
-
-
-
-
Net of fees and tax
2.5
-
-
-
-
Before fees and tax
3.4
-
-
-
-
Return above inflation - aims to achieve 5%pa above inflation (before
fees and tax) over 5 year periods
2.9
-
-
-
-
Net of fees and tax
4.1
9.3
12.9
8.9
4.3
Before fees and tax
5.3
11.9
16.7
12.4
7.5
Return above inflation - aims to achieve 6%pa above inflation (before
fees and tax) over 7 year periods
4.8
9.9
14.4
9.9
4.9
CPI (latest available is 31 December 2014)
MLC Inflation Plus – Conservative Portfolio
MLC Inflation Plus – Moderate Portfolio
MLC Inflation Plus – Assertive Portfolio
Source: MLC
21
21
4.
A. MLC INFLATION PLUS ASSERTIVE
− Returns relative to benchmark
Delivered 4.9% pa real return over 7 years to 31 December 2014.
Currently on track to deliver target return over shorter time frames.
MLC INFLATION PLUS ASSERTIVE RETURNS (BEFORE FEES AND TAXES) RELATIVE TO ITS TARGET
40%
30%
-2 standard deviations
-1 standard deviation
6% real return
1 standard deviation
2 standard deviations
This highlighted point is
the real return over 7
years to 31 Dec 2014
Annualised Real Return
20%
10%
0%
-10%
-20%
-30%
Month invested
Source: MLC
22
4.
A. MLC INFLATION PLUS ASSERTIVE
− Contributors to returns
CONTRIBUTION TO TOTAL RETURN BY ASSET CLASS (BEFORE FEES AND TAX)
Source: MLC
23
4.
B. MLC HORIZON
− Contributors to returns
Key contributors to most portfolios over the quarter
• Global shares (unhedged)
• Global private assets
• Fixed income
• Multi-asset real return strategies
Key contributors to most portfolios over the year
• Global shares (unhedged)
• Australian shares
• Fixed income
• Global private assets
24
4.
B. MLC HORIZON
− Benchmark indices from 1 July 2014
Asset class
Index
MLC
MLC
MLC
MLC
MLC
MLC
MLC
Horizon 1 Horizon 2 Horizon 3 Horizon 4 Horizon 5 Horizon 6 Horizon 7
%
%
%
%
%
%
%
Australian shares
S&P/ASX 200 Accumulation
-
11.0
21.0
31.0
36.0
41.0
52.0
Global shares
MSCI All Countries (A$unhedged)
-
11.0
14.0
17.0
23.0
30.0
38.0
MSCI All Countries (A$hedged)
-
2.0
4.0
6.0
8.5
14.0
25.0
Global property securities
EPRA/NAREIT Global (A$hedged)
-
2.0
3.0
4.0
4.0
2.0
-
Global private assets
MSCI All Countries (A$hedged)
-
2.0
4.0
6.0
6.0
7.0
8.0
Alternatives and other (growth)
CPI + 3.5%
-
1.6
3.2
5.2
4.5
4.0
5.0
-
29.6
49.2
69.2
82.0
98.0
128.0
30.0
10.0
5.0
-
-
-
-
-
10.0
8.0
7.0
5.0
-
-
42.0
22.5
12.0
1.8
-
-
-
-
4.5
6.8
8.5
5.2
-
-
28.0
15.0
8.0
1.2
-
-
-
Barclays Capital Global Agg (A$hedged)
-
4.5
6.8
8.5
5.3
-
-
Barclays Capital US Corporate High Yield
(A$hedged)
-
0.5
0.8
1.0
0.5
-
-
Credit Suisse Leveraged Loan (A$hedged)
-
0.5
0.8
1.0
0.5
-
-
CPI + 2%
-
1.9
1.8
0.8
0.5
-
-
Cash + 3%
-
1.0
1.0
1.0
1.0
2.0
2.0
TOTAL DEFENSIVE ASSETS
100.0
70.4
50.8
30.8
18.0
2.0
2.0
TOTAL ASSETS
100.0
100.0
100.0
100.0
100.0
100.0
TOTAL GROWTH ASSETS
Cash
Bloomberg AusBond Bank Bill Index*
Australian fixed income
Bloomberg AusBond Infl 0-10 Yr Index*
Bloomberg AusBond Composite 0-3 Yr Index*
Bloomberg AusBond Composite 0+ Yr Index*
Global fixed income
Alternatives and other (defensive)
Barclays Capital Global Aggregate
(1-3 yrs A$hedged)
Source: MLC
* This index has recently changed it’s name from UBS to Bloomberg.
130.025
25
4.
B. MLC HORIZON
– Relative to peers – quartile performance
rankings for MLC Super Fundamentals
Returns are above median over most timeframes
to 31 December 2014
1 year
3 years
5 years
MLC Horizon 2
Q3
Q1
Q1
MLC Horizon 3
Q1
Q2
Q2
MLC Horizon 4
Q1
Q2
Q1
MLC Horizon 5
Q1
Q1
Q1
MLC Horizon 6
Q1
Q1
Q1
Note: Peer universe is the MLC Morningstar Superannuation Universe
Source: Morningstar Direct
26
4.
B. MLC HORIZON
− Relative to peers
All the MLC Horizon portfolios are above median over most
timeframes − a strong result.
MLC Horizon 4’s one year peer relative return is above median. The main
reasons are:
• the foreign currency overweight has added value
• the overweight to global private assets has performed strongly, and
• Inflation Plus exposures have provided risk control while enhancing returns
Source: MLC
27
27
4.
B. MLC HORIZON
− Absolute returns
MasterKey Super Fundamentals
Performance to 31 December 2014
3 months
%
1 year
% pa
3 years
% pa
5 years
% pa
7 years
% pa
MLC Horizon 1 Bond (net of fees and tax)
0.4
2.3
3.1
3.4
3.7
MLC Horizon 2 Capital Stable (net of fees and tax)
2.0
5.4
7.4
5.6
3.9
MLC Horizon 3 Conservative Growth (net of fees and tax)
2.9
7.0
9.9
6.8
4.0
MLC Horizon 4 Balanced (net of fees and tax)
3.7
8.6
12.4
7.7
3.7
MLC Horizon 5 Growth (net of fees and tax)
4.1
9.1
14.2
8.2
3.3
MLC Horizon 6 Share (net of fees and tax)
4.5
9.6
16.1
8.6
2.9
MLC Horizon 7 Accelerated Growth (net of fees and tax)
4.9
10.9
20.7
10.0
2.1
Source: MLC
28
28
C. MLC INDEX PLUS
− Contributors to returns
4.
Key contributors to all portfolios over the quarter
•
•
•
•
Global shares (unhedged)
Fixed income
Australian shares
Global shares (hedged)
Key contributors to all portfolios over the year
•
•
•
•
Global shares (unhedged)
Australian shares
Fixed income
Global shares (hedged)
Source: MLC
29
4.
C. MLC INDEX PLUS
− Benchmark indices from 1 July 2014
Conservative
%
Balanced
%
Growth
%
Asset class
Index
Australian shares
S&P/ASX 200 Accumulation
21.0
32.0
37.0
Global shares
MSCI All Countries (A$ unhedged)
15.0
18.0
24.0
MSCI All Countries (A$ hedged)
11.0
16.0
20.0
3.0
4.0
4.0
50.0
70.0
85.0
5.0
-
-
8.0
7.0
5.0
Bloomberg AusBond Composite 0-3 Yr
Index*
12.6
2.4
-
Bloomberg AusBond Composite 0+ Yr
Index*
8.0
9.5
5.0
Barclays Global Aggregate 1 - 3 years
(A$ hedged)
8.4
1.6
-
Barclays Global Aggregate (A$ hedged)
8.0
9.5
5.0
TOTAL DEFENSIVE ASSETS
50.0
30.0
15.0
TOTAL ASSETS
100.0
100.0
100.0
Property securities
EPRA/NAREIT Global (A$ hedged)
TOTAL GROWTH ASSETS
Cash
Australian fixed income
Global fixed income
Bloomberg AusBond Bank Bill Index*
Bloomberg AusBond Infl 0-10 Yr Index*
Source: MLC
30
* This index has recently changed it’s name from UBS to Bloomberg.
4.
C. MLC INDEX PLUS
− Returns relative to benchmark
MasterKey Super Fundamentals
Performance to 31 December 2014
3 months
%
1 year
% pa
MLC Index Plus Conservative Growth (net of fees and tax)
3.1
7.3
MLC Index Plus Balanced (net of fees and tax)
3.8
8.7
MLC Index Plus Growth (net of fees and tax)
4.2
9.1
Source: MLC
31
31
4.
D. ASSET CLASS FUNDS
− Relative to benchmark
Performance to 31 December 2014
1 year
%
3 years
% pa
5 years
% pa
7 years
% pa
10 years
% pa
MLC Australian Share Fund (before fees and tax)
5.5
14.8
6.0
2.4
7.4
Excess return (relative to S&P/ASX 200 Accumulation Index (S&P/ASX 300
prior to Sep 2012, S&P/ASX 200 Index prior to Nov 2002))
-0.1
-0.2
-0.7
0.3
-0.1
MLC Global Share Fund (before fees and tax)
13.5
23.8
12.4
4.3
6.2
Excess return (relative to MSCI All Country World Index (MSCI World Index
prior to July 2002))
-1.0
0.1
0.6
0.0
0.0
MLC Hedged Global Share Fund (before fees and taxes)
10.5
19.7
13.9
4.9
8.3
Excess return (relative to MSCI All Country World Index Hedged (MSCI World
Index Hedged prior to July 2002))
-1.6
-0.2
0.3
-1.0
-0.7
MLC Global Property Fund (before fees and taxes)
24.4
22.1
16.1
7.1
-
Excess return (relative to EPRA/NAREIT ($A Hedged) (UBS Global Investors
Index (hedged) prior to 1 Aug 2011))
1.1
0.7
-0.9
0.5
-
8.0
6.8
7.7
-
-
-2.1
-0.1
-0.2
-
-
MLC Diversified Debt Fund (before fees and tax)
*
Excess return (relative to 50% Bloomberg AusBond Composite 0+ Yr Index &
50% Barclays Capital Global Aggregate Bond Index (hedged))
Source: MLC
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5.
WHERE TO FIND CLIENT TOOLS
Go to the Adviser section of mlc.com.au, then go to
MLC Investments/Performance/Commentaries.
Client investment update presentation
Presentation of fund performance, updated quarterly
Fund performance commentaries
Client report on fund performance for the quarter and year,
updated monthly available on Fund Profile Tool
Scenario insights and portfolio
positioning
Quarterly update on our investment positions, detailed report
for financial advisers and a summary report for clients
Strategy updates
Outline of changes to our investment strategies, including client
letters and other tools
Economic updates
Monthly commentary on economic and market developments,
available as video and client Q&A
Year in review
Market update prepared for calendar and financial years for
your clients
Investment insights and news
Commentary on current events and investment issues for your
clients
Manager insights
Highlights of MLC’s investment managers’ insights on markets
and their positions, updated quarterly
Stock stories
Our managers outline their rationale for purchasing specific
companies, updated quarterly
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