Fund watch
How has the fund performed?
| Performance as at 30 June 2022 | 3
months (%) |
1 year (%) |
3
years (%) |
5 years (%) |
10
years (%) |
| MFL Mutual Fund | -13.15% | -11.30% | 3.38% | 6.34% | 9.41% |
Performance is after annual fund charges and before tax.
The challenging year for investment markets continued in the second quarter, which saw listed property indexes on both sides of the Tasman end sharply lower. Against this backdrop of further weakness in the property sector, the MFL Mutual Fund declined 13.15%.
The property sector is particularly sensitive to rising bond yields, and with global central banks hiking interest rates to slow inflation, the sector faced headwinds over the quarter. The yield on the New Zealand 10-year government bond rose 64 basis points to 3.86% over the quarter.
In fund performance, the retirement sector continued its challenging start to 2022, which saw the fund’s overweight to Summerset Group Holdings Limited a detractor on fund performance, with shares in the company declining more than 18%, suffering from the negative housing sentiment and rising bond yields. Meanwhile, a strong May from Ryman Healthcare Limited meant its shares only fell around 4% over the quarter, and despite the decline, it finished well ahead of the benchmark.
Charter Hall Group was another detractor over the quarter, with shares in the company declining around 30%. While there was no company-specific news that affected its share price, the rising-interest-rate environment has seen the market price in a potential slowdown in investment as the cost of capital rises.
Ramsay Health Care Limited was one of the standout performers for the fund, with shares in the company rising around 15% after news that a consortium led by KKR & Co had made a conditional non-binding $88.00 cash per share offer to buy the company, which represented a premium of more than 35% at the time of announcement.
In spite of the fact it’s been a challenging start to the year, our overall view on the fund remains positive. We continue to prioritise companies that exhibit strong leadership traits and a clear strategy. This investing thesis has benefited investors over the long term, as seen by its long-term performance.
This article has been prepared by ANZ New Zealand Investments Limited (‘ANZ Investments’) for information purposes only and it should not be treated as financial advice.
MFL Mutual Fund Limited is the issuer and manager of the MFL Mutual Fund. ANZ Investments is not an authorised deposit taking institution (ADI) under Australian law and investments in the scheme aren't deposits in or liabilities of ANZ Bank New Zealand Limited, Australia and New Zealand Banking Group Limited, or their subsidiaries (together 'ANZ Group'). ANZ Group doesn’t stand behind or guarantee ANZ Investments. Investments in the scheme are subject to investment risk, including possible delays in repayment, and loss of income and principal invested. ANZ Group won’t be liable to you for the capital value or performance of your investment.
Past performance does not indicate future performance, and performance can be negative as well as positive. This material is for information purposes only. We recommend seeking financial advice about your situation and goals before getting a financial product.
Investment and administration manager: ANZ New Zealand Investments Limited.