Top 10: pharmaceuticals (includes profiles of Max India, Wuyi)
1 April, 2008In retirement, Australia can’t turn the tap off
1 April, 2008ROADTEST
MLC MasterKey Horizon 3
A conservative multisector fund for the long long term
Performance
Over the last 12 months, the wholesale version (the one you’re likely to get through platforms) is down 0.64%, according to Morningstar – but in this environment, that’s in the top 10 out of 99 comparable funds. Looks very nice over the longer term, delivering an average of 10.04% a year over the last five years – although that’s actually a bit lower down the league tables, at 19th, which is still top quartile performance
Holdings
Like all multimanager products, this one uses dozens of underlying managers (31 as of June 30) across a range of asset classes, with Australian shares the biggest chunk, then global bonds, global shares, Australian bonds, inflation-linked bonds, private markets, property securities and long-term absolute return.
Experience
MLC is one of the pioneers of multi-manager investing in this country, and its roster of managers includes some of the biggest names in the business, from global shares managers like Alliance, Bernstein and Wellington, to property teams including LaSalle, Morgan Stanley and Vanguard.
Fees
Management expense ratio is 1.98% as a super fund, 1.86% as an investment trust and 1.76% as an allocated pension.
Gripes
Seemed a high allocation to bonds going into the credit crunch. However MLC’s decision to allocate more to international shares and less to Australian than many peers, a decision which has sometimes dented performance in recent years, may well start to bear fruit from now on.
Verdict
Exposes you to a host of very brainy managers at a time when diversification is going to be key.
