Fund watch
How has the fund performed?
| Performance as at 30 September 2022 | 3 months (%) |
1 year (%) |
3 years (%) |
5 years (%) |
10 years (%) |
| MFL Mutual Fund | -3.90% | -18.51% | 0.11% | 5.00% | 8.26% |
Performance is after annual fund charges and before tax.
The Australasian listed property sector remained under pressure during the third quarter, on the back of rising bond yields, which generally weigh on the sector. The New Zealand listed property index fell 1.8%, while the Australian equivalent fell 6.7%. This compared to the global listed property index which declined 11.5% (hedged to the New Zealand dollar).
On the back of further weakness, the MFL Mutual Fund fell 3.90% over the quarter.
The Reserve Bank of New Zealand (RBNZ) continued its aggressive tightening policy, raising the Official Cash Rate (OCR) by a further 100 basis points. This saw the yield on the 10-year government bond reach its highest level in about eight years, as markets priced in a further 150 basis points of rate hikes by the RBNZ.
A key position within the healthcare sector was a detractor from relative performance over the quarter. Shares in Ramsay Health Care Limited, which had jumped higher in the previous quarter on news that a consortium, led by KKR & Co was looking at a buyout of the company, did a sharp about-turn. Its shares fell 21% as the Australian hospital operator confirmed they had ended their talks without reaching an agreement.
Having a positive impact on relative performance were our holdings in Summerset Group Holdings Limited and Lifestyle Communities Limited. Shares in Summerset rose 13.4% after the company reported a solid interim result in August, with underlying profit up 9% year-on-year. Meanwhile, Lifestyle Communities rose more than 15% after it announced it had settled 401 new homes in FY22; increasing its homes under management to more than 3,000, and lifting its underlying profit by 69%.
Although it’s been a challenging period for investors in the MFL Mutual Fund, and investors across all asset classes, we continue to prioritise investment in quality companies. By focusing on quality companies with good management and a strategy for growing shareholder value, it ensures that the portfolio can withstand these uncertain periods and thrive in times of optimism.
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.