56115 global equities sector wrap-up cs4 - morningstar,...

Global Equities Sector Wrap-Up

June 2015

Director of Manager Research

Tim Murphy, CFA

Director of Manager Research Ratings

Tom Whitelaw

Manager Research Analysts

Mark Laidlaw

Andrew Miles

Alex Prineas

Julian Robertson

Elliot Smith

Tim Wong, CFA

Wilson Wong

Matthew Wu

Kathryn Young

iiJune 2015 Global Equities Sector Wrap-Up

Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).

Contents

Executive Summary 1

Changes to Morningstar Analyst Ratings 2

A Rough Spell for Active Managers 4

Currency Diversification: Alive and Well 6

Are Managers Becoming Defensive? 7

Role in Portfolio – Blending Global-Equity Strategies 9

Morningstar Medallists 13

Appendix 1: Basic Data 15

Appendix 2: Portfolio Characteristics 18

Appendix 3: People 21

Appendix 4: Style Box Breakdowns 24

Copyright, Disclaimer & Other Information 27

1June 2015 Global Equities Sector Wrap-Up


Executive Summary

Morningstar has completed qualitative research

assessments of global equities investment

strategies, including all strategies under coverage

in the global large-cap, global small-cap, Asian,

and emerging-markets equity sectors. This sector

wrap-up provides an overview of our key

observations and a summary of our Morningstar

Analyst Ratings.

We start with a look at changes to our Morningstar

Analyst Ratings subsequent to the review. We

upgraded a total of five funds, including one to

Gold from Silver. We downgraded two funds to

Neutral from Bronze, and initiated coverage of

eight vehicles.

Next, we take a look at the underwhelming

performance of active managers within global

large-cap equities over the course of 2014. Only

about one quarter of our coverage list of active

managers outperformed the MSCI World ex

Australia Index’s 15% gain. We examine

explanations for that disappointing trend.

Morningstar has long been a proponent of

unhedged global-equity exposure for its potential to

diversify equity risk at the overall portfolio level.

We update that argument in light of the significant

declines in the Australian dollar versus major

developed market currencies, particularly the U.S.

dollar.

After successive years of strong gains out of global

equities, advisers and their clients might

understandably be wondering if the time has come

for a more defensive posture. Besides talking with

portfolio managers, there are several ways we can

gauge whether a manager has an eye toward

defence more than offense. We step through some

of those in an effort to measure the mood of

managers we cover.

For our regular discussion on the sector’s role in

investor portfolios, we take our view that global

equities should play a foundational role as given.

We look at ways to blend to managers together

and some particularly useful data points.

We conclude with a list of those strategies we

designated Morningstar Medallists and tables of

data summarising key features of our coverage list.

Full copies of our research reports, as always, are

available in the Morningstar Adviser Research

CentreTM and Morningstar DirectSM.

Kathryn Young

Senior AnalystManager Research



Changes to Morningstar Analyst Ratings

We take a medium- to long-term outlook when determining

qualitative recommendations. Our views about the merits of

investment strategies move over time on the basis of

manager-specific factors such as investment team

composition, changes to investment process, and our degree

of relative conviction. The following is a description of all the

changes to Morningstar Analyst Ratings that occurred during

this review cycle.

Global Large CapUpgrades

We upgraded Magellan Global 15699 to Gold from Silver.

This popular strategy has proved itself for more than seven

years now, and we have become more confident in the firm’s

ability to manage a growing team and significant growth in

funds under management.

Downgrades

We downgraded Capital International Global Equity

17251 to Neutral from Bronze. Organisational changes

introduced from 2011 aimed at combating staleness and

inefficiency have done little to engender confidence that the

strategy can produce sustainable, above-market returns.

We moved Goldman Sachs International 4546 to Neutral

from Under Review. It was rated Bronze before going under

review. In August 2014, Goldman Sachs replaced subadviser

Wellington Management with a London-based internal team

called Global Equity Partners, which has undergone a number

of changes since its 2003 start, which concerns us. The

current approach has been in place since 2011. We think it is

investable but has yet to prove itself outstanding.

New Coverage

We initiated coverage of SPDR S&P World ex Australia

ETF WXOZ and SPDR S&P World ex Australia Hedged

ETF WXHG at Bronze. Unlike cross-listed rivals, these ETFs

are dedicated local listings, which should alleviate

paperwork burden for Australian investors. By tracking the

S&P Developed Ex-Australia LargeMidCap Index, they offer

well-diversified exposure, and they’ve reached suitable

scale.

We initiated coverage of SPDR S&P Global Dividend ETF

WDIV at Neutral. We appreciate that it is locally listed and

offers a yield of about 4.5% at the time of writing, which is

much higher than the 2.0% offered by broader global

equities. However, relatively high turnover and a high price

tag for an exchange-traded fund prohibit us from having a

more positive view overall.

We initiated coverage of Vanguard MSCI Index

International ETF VGS and Vanguard MSCI Index

International ETF Hedged VGAD at Bronze. These funds

track the well-known MSCI World ex Australia Index, and

they are the cheapest listed vehicles in the market that also

offer such well-diversified exposure.

We initiated coverage of Carnegie WorldWide Equity

Trust 4542 at Neutral. We believe this strategy, which is

offered by BNP Paribas Investment Partners, has potential to

be a credible offering. It is managed by a long-tenured team

that seeks quality companies that can deliver long-term

growth. However, it will take some time to get more

comfortable with the thematic elements of its approach,

which can supersede the quality criteria.

We initiated coverage of Platinum Global Fund 40540 at

Silver. This fund was launched in September 2014

specifically to be offered on the ASX’s mFund settlement

service platform for unlisted funds. It’s designed to be

substantially similar to Platinum’s flagship International

strategy, which we rate Gold. However, some tweaks

necessary for mFund qualification and lack of scale prohibit

us from having as much conviction in this vehicle as we do

the flagship.

Other

We returned Perpetual Wholesale International Share

4364 to a Neutral rating after it had been placed under

review. Perpetual moved the management of this strategy

in-house after terminating subadviser Wellington

Management in January 2015. We appreciate that the

investment process and team are aligned with Perpetual’s

successful Australian equities unit, but we are cautious

about the team’s short track record and depth of resources.

Kathryn Young




Ceased

During the 2014 global-equities sector review, we ceased

coverage on the following strategies: AMP Capital Global

Equity Growth 6833, GMO Global Equity Trust 8874,

Pinnacle Global Shares High Alpha Trust 15312, and

River and Mercantile World Equity 14377.

Global Small CapUpgrades

We upgraded Vanguard International Small Companies

15897 to Bronze from Neutral. A gradual increase in assets

has allowed Vanguard to move from optimised sampling

toward full replication of the MSCI World ex Australia Small

Cap Index. We believe capable active managers should be

able to add value in this sector but few have sustainably, so

Vanguard stands out as a reasonable way to access global

small caps.

We upgraded Hunter Hall Global Value HHV and Hunter

Hall Value Growth Trust 3876 to Neutral from Negative.

The firm still has work to do as it stabilises the business

after a raft of staff departures and strategy tweaks, but we

think the remaining managers deserve credit for taking steps

in the right direction, including the introduction of a retention

scheme for key staff and fee reductions. This strategy

remains punchy and atypical, but it is investable.

Ceased

We ceased coverage of the following strategies: Schroder

Global Small Companies 5055, BlackRock WS Global

Small Cap 6944, and Hunter Hall Global Equities Trust

7869.

Asian & Emerging MarketsUpgrades

We upgraded BT Asian Share WS 4246 to Bronze from

Neutral. JO Hambro Capital Management (JOHCM) took over

this strategy in March 2014. We like the team’s high

conviction and benchmark-agnostic approach, and we have

confidence in its research and analysis.

New Coverage

We initiated coverage of Vanguard FTSE Emerging

Markets Shares ETF VGE at Bronze. This vehicle tracks the

FTSE Emerging Markets Index and is the cheapest emerging-

markets ETF in the market. It is locally listed, which should

mitigate tax and paperwork burdens for Aussie investors, but

it gains efficiency by investing into a U.S.-listed ETF that

Vanguard has offered since 2005.

Ceased

During the 2014 sector review, we ceased coverage of

Schroder Global Emerging Markets 14838.



A Rough Spell for Active Managers

While the MSCI World ex Australia Index had a solid year

in 2014 with a 15.01% return but only about a quarter of

Morningstar’s international active equities coverage

outperformed the index after fees. This was the second

successive year that most active managers failed to

surpass the benchmark, testing the patience of investors.

Our 2013 global equities sector wrap identified weak

emerging markets performance and the rising U.S. dollar

among several themes that detracted from the relative

performance of many active managers during 2013. These

remained relevant factors in 2014. The MSCI Emerging

Markets NR index returned 6.93% during the year –

behind broader global equities. The U.S. dollar’s ongoing

strength compounded the relative pain of maintaining a

below index exposure to the outperforming U.S. stock

market that most fund managers held.

Indeed, an underweight to U.S. equities detracted

significantly across many active large cap international

equity strategies. Underweight exposure to oil helped

many managers but underweight exposures to healthcare

and technology detracted, as did an overweight to value.

Managers Typically Underweight the U.S.

An underweight to the United States was easily the

biggest detractor in the country positioning of active fund

managers. The U.S. dominates the MSCI World ex

Australia Index, with an approximate 59% weighting at

the end of 2014. U.S. equities rose substantially in

Australian dollar terms during 2014 to rank among the

best in developed markets. Its 23% return was boosted by

the Australian dollar’s 9% stumble against the greenback.

However, active managers generally viewed the U.S. as

overvalued on the back of unprecedented central bank

stimulus. Only five managers were overweight the U.S.

through the course of the year, on average. Perhaps

revealingly, outperforming managers were 4%

underweight on average, compared to 15% underweight

for the group of laggards.

Underperformance of Value

Another prominent theme was the underperformance of

value relative to growth. In 2014, the equity world

large-growth Morningstar Category (which encompasses

all funds in that category that are on Morningstar’s

databases) returned 13.51%, while the equity world

large-value category returned only 11.53%. The overall

P/E differentials across these two categories were

significant, with value at 14.0 times compared with

growth’s 18.3 times. The lowest P/E quintile of the MSCI

World ex Australia significantly underperformed the other

quintiles; thus, value’s underperformance to an extent is

unsurprising.

Energy, Health Care, and Technology

The oil price plunge in the second half of the year was the

biggest story of 2014. The average manager was

underweight energy relative to the MSCI World ex

Australia Index, helping to limit the pain associated with

oil’s dive. That said, the typical outperforming manager

had lower weightings.

Other sectors of note include health care and technology.

These sectors performed particularly strongly with 30.0%

and 27.2% returns, respectively. And positioning in these

sectors was a common factor in relative returns among

funds; those that outperformed tended to have an

above-average exposure compared with the laggards.

The Case for Active Management

While 2014 was undoubtedly disappointing for active

management, a select group of these strategies still retain

qualities that we expect to reward investors over the long

term.

Indeed, we raised this issue after observing the travails of

active global equity managers in our April 2014 Talking

Point – Passive Strategies Pass Muster in Global Equities.

A period of underperformance can colour views on the

merits of various strategies, but investors should remain

wary of extrapolating this into the future. Investors should

also look beyond short term performance before drawing

conclusions. Some reasonable fundamental arguments

exist to defend active manager’s performance over the

course of 2014, such as valuation-related concerns

attributable to unprecedented central bank stimulus. And

some of our Gold-rated managers, including Magellan

Global 15699 and Platinum International 4505, still boast

impressive track records over the course of a market cycle.

This instils confidence in their investment merit and

supports our view that they have distinct competitive

advantages that can sustain success.

Matthew Wu

AnalystManager Research



Table 1: Coverage-List Performance Versus the MSCI World ex Australia Index

Name 2014 Total Return

Acadian Wholesale Global Eqty Long Short 21.36

Carnegie WorldWide Equity Trust 20.76

Generation Wholesale Global Share 20.27

Arrowstreet Global Equity 19.98

MFS Concentrated Global Equity Trust W 18.26

Acadian Wholesale Global Equity 17.77

T. Rowe Price Global Equity 17.68

BlackRock Scientific Intl Equity Fund 17.31

AMP Capital FD Core International Shr 16.35

IFP Global Franchise 15.75

Grant Samuel Epoch Gbl Eq Shldr Yld Uhgd 15.74

BT Core Gbl Share WS 15.59

MSCI World Ex Australia NR AUD 15.01

AMP Capital W Global Equity Value 14.57

Magellan Global 14.55

PM Capital Global Companies 14.39

MFS Global Equity Trust 13.99

AMP Capital Res Inv Leaders Intl Shr A 13.90

Advance International Shr Multi-Blend W 13.90

Acadian Global Managed Volatility Equity 13.86

Zurich Investments Gbl Thematic Shr 13.70

Russell Global Opportunities A 13.30

CFS FC W Inv-FirstChoice W Global Share 13.27

Perpetual Wholesale International Share 13.08

Dimensional Global Large Company Trust 13.02

Franklin Global Growth W 12.81

MLC Wholesale Global Share 12.73

Schroder Global Value 12.59

Fidelity Global Equities 12.33

Walter Scott Global Equity 12.18

Wingate Global Equity Fund 12.11

Goldman Sachs International WS 11.62

Zurich Investments Unhedged Global Gr 11.52

Dimensional Global Core Equity Trust 11.41

UBS International Share 11.05

Ironbark GTP Global Equity Thematic 10.98

Realindex Wholesale Global Share 10.87

Altrinsic Global Equities Trust 10.52

Capital International Global Equity 9.99

GVI Aubrey Global Growth & Income Unhdgd 9.74

Aberdeen International Equity 9.68

CFS FC W Inv – CFS W Worldwide Leaders 9.59

Dimensional Global Value Trust 9.16

Platinum Unhedged Fund 8.39

Platinum International Fund 7.79

Templeton Global Trust Fund 7.13

Threadneedle Global Equity Income Unhdgd 5.46

Platinum International Brands Fund 0.46



Currency Diversification: Alive and Well

At Morningstar, we have long maintained that potential

diversification benefits make unhedged global-equities

exposure an ideal way to manage risk at the overall portfolio

level. For several years after the global financial crisis, as the

Australian dollar appreciated to and remained at levels many

considered overvalued, possible gains resulting from any

currency depreciation provided more tactical support to that

structural view. After marked declines in the currency, most

notably against the U.S. dollar, we think it’s worth reiterating

this stance lest anyone believe that the argument in favour

of currency diversification is impaired.

The Case for Unhedged Global Equity Exposure

The Australian dollar is widely regarded as a procyclical

currency because it tends to rise in benign markets and fall

in rougher times. Figure 1 above demonstrates that clearly.

The local dollar became less valuable during notable bear

markets, including the “tech wreck” of March 2000 to

October 2002 and the global financial crisis of June 2008 to

March 2009. It then proceeded to gain value against the U.S.

dollar as equity markets recovered. That tendency means

that foreign-currency exposure can act as a natural offset to

declines in an investor’s equity allocation during times of

market stress. It’s worth noting that the offsetting

relationship isn’t perfect or guaranteed. There have been

times in the past when global equities have declined yet the

Australian dollar has appreciated. But Figure 1 clearly shows

that during the worst times for equity markets, the Aussie

dollar has declined.

Figure 2 below illustrates how powerful that can be at the

total portfolio level. It shows that a portfolio of unhedged

global equities, using Vanguard International Shares

Index 4489 as a proxy, is far less correlated to domestic

shares than a portfolio of hedged global equities, with

Vanguard International Shares Index Hedged 6430 as the

proxy.

It also demonstrates that, if anything, the potential for

unhedged global equities to diversify equity risk at the

overall portfolio level seems to have only increased

throughout the past year. The correlation to domestic shares

has declined to almost zero, even going negative for a brief

period, as the Australian dollar depreciated relative to other

major currencies, especially the U.S. dollar.

Many market observers think the Aussie dollar has further to

fall before reaching fair value. In December 2014, Reserve

Bank of Australia Governor Glenn Stevens suggested USD

0.75 might be an appropriate level. But it would have to fall

quite a bit more from here to diminish the potential

diversification benefits of unhedged global-currency

exposure. In 2008, it fell to nearly USD 0.60 and in 2000 it

fell to about USD 0.50. Arguably, the outlook for Australia’s

terms of trade is worse now than it was then So, it’s easy to

believe that it could still provide plenty of offset to global

equities if markets hit a rough patch in the near future.

Figure 2: 3-Year Rolling Correlation to S&P/ASX 200 Index

— Vanguard International Shares Index — Vanguard International Shares Index Hgd AUD

08/2

003

06/2

004

01/2

004

04/2

005

11/2

004

02/2

006

09/2

005

12/2

006

07/2

006

10/2

007

05/2

007

08/2

008

03/2

008

06/2

009

01/2

009

04/2

010

11/2

009

09/2

010

02/2

011

07/2

011

12/2

011

05/2

012

10/2

012

03/2

013

08/2

013

01/2

014

06/2

014

11/2

014

04/2

015

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

Source: Morningstar DirectSM

Figure 1: AUD/USD Exchange Rate – January 1999 to April 2015

0.0

0.2

0.4

0.6

0.8

1.0

1.2

01/1

999

01/2

000

01/2

001

01/2

002

01/2

003

01/2

004

01/2

005

01/2

006

01/2

007

01/2

008

01/2

009

01/2

010

01/2

011

01/2

012

01/2

013

01/2

014

01/2

015


Kathryn Young




Are Managers Becoming Defensive?

Elliot Smith

AnalystManager Research

Table 2: Cash Allocations of the Average and Median Manager During the Past 3 Years

(Average cash % of portfolio) 2012 2013 2014 2015

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

Average Manager 4.12 4.66 5.28 4.47 5.12 4.89 4.52 4.29 4.32

Median Manager 2.57 2.74 2.61 2.46 2.91 2.83 2.69 2.62 2.34


Table 3: Number of Portfolio Holdings and Percentage of Assets in Top-10 Holdings

for the Average and Median Manager

2012 2013 2014 2015

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

Average Manager (# holdings) 82.97 86.36 84.90 84.74 84.41 86.88 82.85 84.14 84.74

Median Manager (# holdings) 80.25 85.79 81.08 81.33 82.17 84.67 81.67 82.00 81.33

Average Manager

(% in top 10)23.94 23.12 23.87 24.86 23.30 23.54 24.83 24.73 24.86

Median Manager

(% in top 10)21.17 20.37 21.08 21.99 20.68 20.37 22.18 21.99 21.99


Global equities have had a stellar run since 2012, the MSCI

World ex Australia Index has grown more than 110% as it

has been fuelled by accommodative monetary policy and

improving economic sentiment. Underlying company

fundamentals have struggled to keep pace, though, as

valuations of most global equity markets are at or nearing

historical highs. This begs the question, do fund managers

think there is more fuel for the fire or are they positioning

themselves for a downturn? There are several ways that we

can gauge how fund managers are positioning their

portfolios, and we will evaluate some of them here.

(Please note that ETFs, indexlike funds, and multimanager

strategies have been removed from this analysis as the

flexibility of portfolio construction is limited in these

products.)

Cash allocations in an equity portfolio have a polarizing

effect on performance. During a down market, cash

allocations are a saviour for managers because they provide

effective downside protection and are cheap and easy to

implement. Most managers, however, are limited in their

ability to hold cash and remain close to fully invested. This

is reflected in the consistently low average cash levels of

managers during the past three years (see Table 2).

However, some managers who are focused on absolute

returns have exercised their ability to hold meaningful cash

allocations. CFS Worldwide Leaders 4672 increased cash

to 15% from 2% at the end of 2013, and it now sits at 19%.

Magellan Global increased its cash allocation to 10% in

August 2014 and again to 15% in April 2015. On both

occasions, veteran investor Hamish Douglass documented

his caution about an increasing interest environment in the

U.S. and the potential for the risk premia supporting asset

valuations to unwind under these circumstances.

Increasing the number of portfolio holdings or reducing the

percentage of assets held in top-10 holdings can also be

seen as a defensive play. This reduces stock-specific risk

and can limit the risk of underperformance during a market

correction. It appears that this hasn’t been the case, though,

as the number of holdings held has remained constant

during the past three years (see Table 3). Within the

universe, several managers bucked this trend. CFS

Worldwide Leaders has roughly halved its number of stock

holdings and increased the concentration in top-10 holdings

since 2012, a result of fewer stocks meeting its stringent

value criteria as the market has rallied.

Given the restrictions on cash allocations and the number of

holdings, stock selection is the primary tool that managers

use to position their portfolios more defensively. One

qualitative measure that we can look at is the investment in

defensive sectors such as health care, consumer defensive,

and utilities. Table 4 shows that it is difficult to spot a trend

in how allocations to defensive sectors have varied during

the past three years. It is worth noting the increase in

weighting of defensive stocks within the MSCI World ex

Australia Index. This is largely due to health care, which has

had a very strong run during the past three years; its

weighting in the index has increased to 13.90% from

10.39% over the period. There has been some significant

movement at the fund level, Magellan Global has seen its

defensive exposure drop to 24% from 48%, while CFS

Worldwide Leaders has ramped it up to 57% from 23%.

Table 4: Ratio of Investment in Defensive Sectors Relative to the Defensive

Allocation in the Market Index

2012 2013 2014 2015

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

MSCI World ex-Aus

Defensive Sector

Weighting(%)

25.36 25.32 25.62 26.98 25.31 25.28 26.26 26.48 26.98

Average Manager

(ratio to market)1.09 1.04 1.07 1.02 1.08 1.09 1.07 1.05 1.02

Median Manager

(ratio to market)1.00 0.94 0.96 0.97 0.97 0.96 1.00 0.99 0.97


(Note: The data used has been adjusted to remove the effects of cash, only equity exposure included.)



Table 5: Ratio of Return on Invested Capital of Managers Relative to the Market

2012 2013 2014 2015

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

MSCI World ex-Aus ROIC (%) 14.02 12.10 12.69 13.06 11.27 13.06 13.11 13.18 13.06

Average Manager

(ratio to market)1.03 1.01 0.99 1.00 1.00 0.98 1.03 1.00 1.00

Median Manager

(ratio to market)1.00 1.01 0.97 1.00 1.04 0.94 0.98 1.00 1.00


Table 6: Debt/Capital of Portfolios Relative to the Market

2012 2013 2014 2015

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

MSCI World ex-Aus

Debt/Capital35.03 34.72 35.04 36.22 34.76 34.75 35.45 35.64 36.22

Average Manager

(ratio to market)0.94 0.93 0.93 0.92 0.94 0.94 0.93 0.92 0.92

Median Manager

(ratio to market)0.92 0.95 0.94 0.94 0.95 0.93 0.93 0.93 0.94


Companies with strong underlying earnings are in high

demand during a downturn, as companies reliant on

fulfilling lofty growth expectations are susceptible to being

punished by the market. Looking at the return on invested

capital (ROIC) provides a gauge of how efficiently a

company generates earnings with the debt and equity

provided by investors. Unfortunately, in aggregate, there is

no observable trend in ROIC from the past three years, see

Table 5. Nonetheless, the metric provides investors with a

tool to assess the quality of stocks a manager is investing

in. For example, AMP Capital Responsible Investment

Leaders 6842 has increased its ROIC to 16% from 13%

during the past three years, while several managers have

seen their quality slip.

The last measure we will look at is the quality of the

balance sheets that portfolios are exposed to, in particular

the financial leverage employed by companies to drive their

businesses. The data (Table 6) shows that financial leverage

has remained relatively constant, but it is worth noting the

divergence within the universe. For instance, IFP Global

Franchise 12160 and Platinum International Brands

6643 saw significant decreases in their underlying leverage,

while T. Rowe Price Global 14479 and Lazard Global

Small Cap 10701 increased their exposure to leveraged

companies.

In conclusion, the data does not support the argument that

managers are becoming more defensive as a whole.

However, there is significant divergence in how managers

view global equity markets and how they are positioning

their portfolios. For investors looking for a conservative

global equity option, these measures should hopefully

provide some clarity in what is an eclectic asset class.



Role in Portfolio – Blending Global-Equity Strategies

Identifying the qualities and competencies of a fund manager

in an asset class and allocating a Morningstar Analyst

RatingTM is one task, but understanding the role an investment

strategy can play in a portfolio is another. It’s important to

construct a portfolio from our preferred fund managers, as we

believe that they have the credentials to perform well through

a full market cycle. However, it doesn’t follow that throwing

our highest-rated fund managers together will deliver an

appropriate exposure. Investors and advisers therefore need

to understand the characteristics and exposures of the

individual funds, and how these can be blended together to

create a robust and diversified portfolio.

One of the simplest ways of quickly understanding a fund’s

style and market-cap profile is to use the Morningstar Style

BoxTM. This is a holdings-based style map that can help

assess where the weight of the exposure is, and the breadth

of exposure the strategy provides. The style map shows the

portfolio’s exposure at a given point in time, while the style

trail (available in our institutional software platform

Morningstar DirectSM) shows the historical portfolios, to give

an understanding of how the fund has been positioned over

time. This helps minimise any unintended style overlaps

which may reduce diversification and increase risk. Figure 3

Mark Laidlaw


Figure 3: Holdings-Based Style Maps and Style Trails, MFS Global Equity Trust, Platinum International and Magellan

Holdings-Based Style Trail

Mic

roM

idG

iant

Deep-Val Core High-Grth

Magellan Global

Time Period: 30/06/2010 to 31/03/2015

30/06/2010 31/03/2015Platinum International Fund30/06/2010 31/03/2015

Time Period: 30/06/2010 to 31/03/2015


Time Period: 30/06/2010 to 30/04/2015MFS Global Equity Trust30/06/2010 30/04/2015


Larg

eSm

all

Core-Val Core-Grth

Mic

roM

idG

iant

Larg

eSm

all

Deep-Val Core High-GrthCore-Val Core-Grth

Mic

roM

idG

iant

Larg

eSm

all

Deep-Val Core High-GrthCore-Val Core-Grth

Deep-Value Core-Value Core Core-Growth High-Growth

Gia

ntLa

rge

Mid

Smal

lM

icro

Centroid

Investment Name Date

MFS Global Equity Trust 31/03/2015

Platinum International Fund 31/03/2015

Magellan Global 31/03/2015

Holdings-Based Style Map




shows the holdings-based style maps and style trails for MFS

Global Equity Trust 4532, Magellan Global, and Platinum

International.

In terms of the role a particular strategy should play in a

portfolio, we refer to a strategy as being either a core holding

or a supporting player. There are no hard and fast rules that

dictate into which of these buckets a particular fund might sit.

It’s more of an art than a science, taking into account a range

of factors that have varying importance depending on the

category.

One factor that plays a role is a fund’s market-cap exposure.

Though there are certainly exceptions, strategies investing

predominantly in large, well-established companies will

generally be classified as core holdings. The majority of funds

covered in this review can be considered core holdings, as

most are predominantly in the large- and giant-cap box in

terms of average market-cap size. (Figure 4).

Just as important when it comes to assessing the correct

blend of managers is their underlying regional and sector

split. Does a manager play emerging markets directly or do

they look to developed-markets proxies for their exposure?

This potential dispersion is shown clearly when looking at the

Figure 4: Holdings-Based Style Map, Morningstar Medallist Large-Cap Global Share Funds

Mic

roSm

all

Mid

Larg

eG

lant

Deep-Val Core-Val Core Core-Grth High-Grth

Holdings-Based Style Map

Magellan Global

MFS Global Equity Trust

Arrowstreet Global Equity

BT Core Gbl Share WS

Grant Samuel Epoch Gbl Eq Shldr Yld Uhgd

Generation Wholesale Global Share

Vanguard International Shares Index

BlackRock Indexed Int Equity Fund

Dimensional Global Large Company Trust

Dimensional Global Core Equity Trust

Dimensional Global Value Trust

Franklin Global Growth W

Walter Scott Global Equity

CFS FC W Inv - CFS W Worldwide Leaders

Schroder Global Value

T. Rowe Price Global Equity

Aberdeen International Equity

Zurich Investments Gbl Thematic Shr

Realindex Wholesale Global Share

Platinum Unhedged Fund

Ironbark GTP Global Equity Thematic

Platinum International Fund

MFS Concentrated Global Equity Trust W

Altrinsic Global Equities Trust

Platinum International Brands Fund

IFP Global Franchise

31/03/2015

31/03/2015

31/12/2014

31/03/2015

31/12/2014

31/01/2015

30/04/2015

28/02/2015

30/04/2015

31/03/2015

30/04/2015

30/04/2015

30/04/2015

31/03/2015

31/12/2014

28/02/2015

31/12/2014

31/03/2015

30/04/2015

30/04/2015

30/04/2015

31/03/2015

30/04/2015

31/03/2015

31/03/2015

30/11/2014




regional exposure over time of Gold medallists Platinum

International and MFS Global Equity Trust, as shown in

Figure 5 below.

Regional exposures for MFS Global Equity Trust have been

historically concentrated in the major developed areas of the

world, and the weightings have remained fairly constant over

time. Platinum International, on the other hand, is best known

for unearthing ideas in all corners of the globe as shown by

the changes in weightings over time to areas such as Japan

and developing Asia. The same can be said when looking at

exposures at the sector level. See Figure 6. MFS Global Equity

Trust’s remain relatively consistent over time, whereas

Platinum International has shown a willingness to

Figure 5: Regional Exposure – MFS Global Equity Trust and Platinum International

2012 2013 2014 2015

100.00

80.00

60.00

40.00

20.00

0.00

Equity Region United Kingdom % (Long Rescaled)

Investment Name: MFS Global Equity Trust

Equity Region Africa/Middle East % (Long Rescaled)

Equity Region Asia dev % (Long Rescaled)

Equity Region Asia emrg % (Long Rescaled)

Equity Region Australasia % (Long Rescaled)

Equity Region Europe dev % (Long Rescaled)

Equity Region Europe emrg % (Long Rescaled)

Equity Region Japan % (Long Rescaled)

Equity Region Latin America % (Long Rescaled)

Equity Region North America % (Long Rescaled)

Stacked Bar

2012 2013 2014 2015

100.00

80.00

60.00

40.00

20.00

0.00

Equity Region United Kingdom % (Long Rescaled)

Investment Name: Platinum International Fund

Equity Region Africa/Middle East % (Long Rescaled)

Equity Region Asia dev % (Long Rescaled)

Equity Region Asia emrg % (Long Rescaled)

Equity Region Australasia % (Long Rescaled)

Equity Region Europe dev % (Long Rescaled)

Equity Region Europe emrg % (Long Rescaled)

Equity Region Japan % (Long Rescaled)

Equity Region Latin America % (Long Rescaled)

Equity Region North America % (Long Rescaled)

Stacked Bar




substantially increase to sectors when it believes them to be

undervalued and typically shunned by a number of global-

equity peers.

Many large-cap global share funds can be considered core

holdings, but it’s important to look through the headline

exposures and understand the nature of the underlying

portfolio and the strategy employed. This process can help

identify how the strategy can best be used and which other

funds it might complement. Diagnostic tools such as the

Morningstar® Portfolio X-Ray® available in Morningstar

Adviser Research CentreTM and Morningstar DirectSM can

help identify specific fund characteristics and whether the

fund is likely to add any diversification benefits.

Figure 6: Sector Exposures – MFS Global Equity Trust and Platinum International

2012 2013 2014 2015

100.00

80.00

60.00

40.00

20.00

0.00

GICS Utilities % (Long Rescaled)

Investment Name: MFS Global Equity Trust

GICS Energy % (Long Rescaled)

GICS Materials % (Long Rescaled)

GICS Industrials % (Long Rescaled)

GICS Consumer Discretionary % (Long Rescaled)

GICS Consumer Staples % (Long Rescaled)

GICS Healthcare % (Long Rescaled)

GICS Financials % (Long Rescaled)

GICS Information Technology % (Long Rescaled)

GICS Telecom Services % (Long Rescaled)

Stacked Bar

Stacked Bar

2012 2013 2014 2015

100.00

80.00

60.00

40.00

20.00

0.00

GICS Utilities % (Long Rescaled)

Investment Name: Platinum International Fund

GICS Energy % (Long Rescaled)

GICS Materials % (Long Rescaled)

GICS Industrials % (Long Rescaled)

GICS Consumer Discretionary % (Long Rescaled)

GICS Consumer Staples % (Long Rescaled)

GICS Healthcare % (Long Rescaled)

GICS Financials % (Long Rescaled)

GICS Information Technology % (Long Rescaled)

GICS Telecom Services % (Long Rescaled)




Morningstar Medallists

Investment strategies with Morningstar Analyst Ratings of Gold, Silver, or Bronze are considered to be Morningstar Medallists.

These are the strategies that in our opinion truly stand out and share common traits, including a capable and stable team,

robust processes, and an ability to deliver in a variety of market conditions.

Of the 63 global large-cap strategies we covered in 2014, we designated 38 as Morningstar Medallists (Table 7 below). Three

strategies received the highest-possible Analyst Rating of Gold. Twelve strategies attained Silver, and 23 were rated Bronze.

Table 7: Global Large-Cap Morningstar Medallists

Ticker Fund Manager/Strategy Morningstar Analyst Rating™

15699 Magellan Global Gold

4532 MFS Global Equity Trust Gold

4505 Platinum International Fund Gold

4768 Aberdeen International Equity Silver

14739 Arrowstreet Global Equity Silver

4672 CFS FC W Inv - CFS W Worldwide Leaders Silver

4713 CFS FC W Inv-CFS W Global Resources Silver

16740 Franklin Global Growth W Silver

12160 IFP Global Franchise Silver

19689 MFS Concentrated Global Equity Trust W Silver

40540 Platinum Global Fund Silver

6643 Platinum International Brands Fund Silver

15362 Platinum Unhedged Fund Silver

12329 Walter Scott Global Equity Silver

4951 Zurich Investments Gbl Thematic Shr Silver

19392 Altrinsic Global Equities Trust Bronze

9154 BlackRock Indexed Int Equity Fund Bronze

2951 BT Core Gbl Share WS Bronze

19032 CFS FC W Inv-CFS W Global Soft Commodity Bronze

14573 Dimensional Global Core Equity Trust Bronze

6466 Dimensional Global Large Company Trust Bronze

5841 Dimensional Global Value Trust Bronze

15813 Generation Wholesale Global Share Bronze

16301 Grant Samuel Epoch Gbl Eq Shldr Yld Uhgd Bronze

14109 Ironbark GTP Global Equity Thematic Bronze

IVV iShares Core S&P 500 (AU) Bronze

IOO iShares Global 100 (AU) Bronze

IVE iShares MSCI EAFE (AU) Bronze

16880 Realindex Wholesale Global Share Bronze

15210 Schroder Global Value Bronze

WXHG SPDR S&P World ex Australia Hedged Bronze

WXOZ SPDR® S&P World ex Australia ETF Bronze

14479 T. Rowe Price Global Equity Bronze

VEU Vanguard All-World ex-US Shares ETF Bronze

4489 Vanguard International Shares Index Bronze

VGS Vanguard MSCI Index Intl ETF Bronze

VGAD Vanguard MSCI Index Intl ETF Hedged Bronze

VTS Vanguard US Total Market Shares ETF Bronze




Of the six global small-cap strategies we covered, we designated two as Bronze medallists (Table 8 below).

Table 8: Global Small-Cap Morningstar Medallists


6467 Dimensional Global Small Company Trust Bronze

15897 Vanguard International Small Companies Bronze


Of the 12 global emerging-markets strategies we covered, we rated one Gold, three Silver, and three Bronze (Table 9 below.).

Table 9: Global Emerging-Markets Morningstar Medallists


17803 CFS FC W Inv-Glb Emerging Mkts Leaders Gold

11594 Aberdeen Emerging Opportunities Silver

15444 Arrowstreet Emerging Markets Silver

4870 Lazard Emerging Markets Equity I Silver

IEM iShares MSCI Emerging Markets (AU) Bronze

VGE Vanguard FTSE Emerging Markets Shares ETF Bronze

4743 Vanguard Emerging Markets Shares Index Bronze


Finally, of the 11 Asian equity strategies we covered, we gave two a Silver rating and four a Bronze rating (Table 10 below).

Table 10: Asian Equities Morningstar Medallists


10438 Aberdeen Asian Opportunities Silver

9894 Platinum Asia Silver

4246 BT Asian Share WS Bronze

IAA iShares Asia 50 (AU) Bronze

18337 Macquarie Asia New Stars No.1 Bronze

17615 T. Rowe Price Asia ex-Japan Bronze




Appendix 1: Basic Data

Emerging Markets

Ticker Name Inception Date

Morningstar

Analyst Rating

Global Fund Report

Analysis Date

Fund Size

AUD

Fund Size

Date

Indirect Cost

Ratio (ICR)

11594 Aberdeen Emerging Opportunities 1/7/2004 Silver 8/7/2014 1,435,368,733 30/4/2015 1.50

15444 Arrowstreet Emerging Markets 9/7/2007 Silver 9/7/2014 807,133,883 30/4/2015 1.50

16844 CFS FC W Inv-FC W Emerging Markets 19/5/2008 Neutral 29/1/2014 55,362,726 30/4/2015 1.53

17803 CFS FC W Inv-Glb Emerging Mkts Leaders 22/3/2010 Gold 6/8/2014 155,324,181 30/4/2015 1.37

6468 Dimensional Emerging Markets Trust 31/8/2000 Neutral 19/11/2013 434,494,752 30/4/2015 0.71

4870 Lazard Emerging Markets Equity I 22/10/1997 Silver 3/12/2013 1,044,485,311 4/6/2015 1.15

19031 Realindex Wholesale Emerging Markets 11/4/2011 Neutral 19/5/2014 383,894,390 31/3/2015 0.93

4743 Vanguard Emerging Markets Shares Index 31/12/1997 Bronze 9/7/2014 1,360,051,573 30/4/2015 0.56

Asian


Morningstar

Analyst Rating

Global Fund Report

Analysis Date

Fund Size

AUD

Fund Size

Date

Indirect Cost

Ratio (ICR)

10438 Aberdeen Asian Opportunities 20/10/2003 Silver 6/8/2014 788,861,004 30/4/2015 1.18

17155 AMP Capital Asian Equity Gr A 10/12/2008 Neutral 12/2/2014 1,638,038 30/4/2015 1.12

4246 BT Asian Share WS 22/8/1996 Bronze 12/6/2014 209,489,789 30/4/2015 1.00

15001 CFS FC W Inv-FirstChoice W Asian Share 30/4/2007 Neutral 4/12/2013 180,388,620 30/4/2015 1.54

18337 Macquarie Asia New Stars No.1 27/5/2010 Bronze 7/8/2014 293,425,290 30/4/2015 2.56

13432 Nikko AM New Asia 4/11/2005 Neutral 31/1/2014 28,884,659 30/4/2015 1.03

9894 Platinum Asia 3/3/2003 Silver 25/3/2015 6,215,680,000 30/4/2015 1.54

Global Large-caps


Morningstar

Analyst Rating

Global Fund Report

Analysis Date

Fund Size

AUD

Fund Size

Date

Indirect Cost

Ratio (ICR)

4768 Aberdeen International Equity 1/7/1996 Silver 26/1/2015 460,583,201 30/4/2015 0.98

14288 Acadian Wholesale Global Eqty Long Short 20/1/2006 Neutral 30/4/2015 32,391,908 30/4/2015 1.46

12403 Acadian Wholesale Global Equity 16/5/2005 Neutral 30/4/2015 82,303,846 30/4/2015 1.23

4863 Advance International Shr Multi-Blend W 23/3/1998 Neutral 22/3/2015 63,056,391 30/4/2015 1.10

19392 Altrinsic Global Equities Trust 7/11/2011 Bronze 6/5/2015 220,010,000 30/4/2015 1.25

6842 AMP Capital Res Inv Leaders Intl Shr A 20/4/2001 Neutral 12/5/2015 375,840,059 30/4/2015 1.13

15106 AMP Capital Specialist Intl Shr WS 10/10/2005 Neutral 12/5/2015 46,373,013 30/4/2015 1.08

7589 AMP Capital W Global Equity Value 22/11/2001 Neutral 22/4/2015 369,650,459 31/3/2015 0.98

14739 Arrowstreet Global Equity 20/12/2006 Silver 7/4/2015 473,020,849 30/4/2015 1.28

9154 BlackRock Indexed Int Equity Fund 12/12/2001 Bronze 4/2/2015 295,671,447 30/4/2015 0.20

3307 BlackRock Scientific Intl Equity Fund 15/10/1994 Neutral 27/5/2015 927,980,704 30/4/2015 0.89

2951 BT Core Gbl Share WS 6/10/1992 Bronze 3/2/2015 297,374,863 30/4/2015 0.97

17251 Capital International Global Equity 14/4/2009 Neutral 15/3/2015 325,170,070 30/4/2015 0.96

4542 Carnegie WorldWide Equity Trust 20/5/1997 Neutral 4/5/2015 57,032,782 30/4/2015 0.99

4672 CFS FC W Inv - CFS W Worldwide Leaders 1/7/1997 Silver 30/1/2015 260,794,890 30/4/2015 1.17

4713 CFS FC W Inv-CFS W Global Resources 1/5/1997 Silver 18/5/2015 776,719,958 30/4/2015 1.18

19032 CFS FC W Inv-CFS W Global Soft Commodity 11/4/2011 Bronze 18/5/2015 79,159,041 30/4/2015 1.22

11297 CFS FC W Inv-FirstChoice W Global Share 23/4/2002 Neutral 16/4/2015 519,704,218 30/4/2015 1.22

14573 Dimensional Global Core Equity Trust 5/12/2006 Bronze 28/5/2015 1,282,461,592 30/4/2015 0.40

6466 Dimensional Global Large Company Trust 18/8/2000 Bronze 27/5/2015 126,726,265 30/4/2015 0.36

5841 Dimensional Global Value Trust 26/8/1999 Bronze 27/5/2015 759,833,337 30/4/2015 0.45

4897 Fidelity Global Equities 1/4/1998 Neutral 8/3/2015 147,190,001 30/4/2015 1.15

16740 Franklin Global Growth W 1/10/2008 Silver 10/3/2015 76,122,656 30/4/2015 1.13




Morningstar

Analyst Rating

Global Fund Report

Analysis Date

Fund Size

AUD

Fund Size

Date

Indirect Cost

Ratio (ICR)

15813 Generation Wholesale Global Share 3/9/2007 Bronze 30/1/2015 247,035,898 30/4/2015 1.24

4546 Goldman Sachs International WS 30/4/1997 Neutral 12/9/2014 67,967,223 30/4/2015 1.22

16301 Grant Samuel Epoch Gbl Eq Shldr Yld Uhgd 15/5/2008 Bronze 30/3/2015 1,755,529,771 30/4/2015 1.25

12290 GVI Aubrey Global Growth & Income Hedged 23/2/2005 Neutral 10/3/2015 63,400,000 30/4/2015 1.11

18451 GVI Aubrey Global Growth & Income Unhdgd 4/9/2009 Neutral 10/3/2015 5,100,000 30/4/2015 1.11

12160 IFP Global Franchise 17/11/2004 Silver 9/3/2015 1,769,594,453 30/4/2015 1.38

14109 Ironbark GTP Global Equity Thematic 4/10/1996 Bronze 8/3/2015 703,600,001 30/4/2015 0.99

15699 Magellan Global 29/6/2007 Gold 23/2/2015 7,490,651,000 30/4/2015 1.35

19689 MFS Concentrated Global Equity Trust W 30/6/2008 Silver 12/2/2015 74,864,378 30/4/2015 0.90

4532 MFS Global Equity Trust 1/7/1997 Gold 12/2/2015 6,888,932,472 30/4/2015 0.77

4776 MLC Wholesale Global Share 1/1/1998 Neutral 28/5/2015 199,299,751 30/4/2015 1.05

4364 Perpetual Wholesale International Share 21/4/1997 Neutral 26/4/2015 314,134,411 31/3/2015 1.23

40540 Platinum Global Fund 8/9/2014 Silver 30/1/2015 19,240,000 30/4/2015

6643 Platinum International Brands Fund 18/5/2000 Silver 30/1/2015 1,322,640,000 30/4/2015 1.54

4505 Platinum International Fund 30/4/1995 Gold 30/1/2015 11,673,139,999 30/4/2015 1.54

15362 Platinum Unhedged Fund 5/3/2007 Silver 30/1/2015 381,190,000 30/4/2015 1.54

6828 PM Capital Global Companies 28/10/1998 Neutral 7/5/2015 287,490,000 31/5/2015 4.68

16880 Realindex Wholesale Global Share 17/11/2008 Bronze 8/2/2015 1,390,129,708 30/4/2015 0.78

12162 Russell Global Opportunities A 31/12/1997 Neutral 14/4/2015 425,514,957 30/4/2015 1.12

15210 Schroder Global Value 26/7/2005 Bronze 11/2/2015 1,576,110,427 30/4/2015 0.98

14479 T. Rowe Price Global Equity 15/9/2006 Bronze 21/4/2015 1,121,888,951 31/3/2015 1.20

5291 Templeton Global Trust Fund 11/9/1996 Neutral 12/5/2015 587,318,023 30/4/2015 0.85

19679 Threadneedle Global Equity Income Unhdgd 30/11/2012 Neutral 16/4/2015 66,743,391 30/4/2015 1.10

3353 UBS International Share 26/11/1992 Neutral 27/1/2015 311,723,214 31/5/2015 1.00

4489 Vanguard International Shares Index 6/6/1997 Bronze 27/4/2015 8,752,625,324 30/4/2015 0.18

12329 Walter Scott Global Equity 18/3/2005 Silver 30/1/2015 2,027,995,703 30/4/2015 1.28

16734 Wingate Global Equity Fund 1/8/2008 Neutral 2/6/2015 148,897,965 30/4/2015 1.15

4951 Zurich Investments Gbl Thematic Shr 25/7/1997 Silver 12/5/2015 1,297,143,830 30/4/2015 0.98

17504 Zurich Investments Unhedged Global Gr 31/8/2009 Neutral 17/5/2015 346,224,648 30/4/2015 0.98

Global Small-Caps


Morningstar

Analyst Rating

Global Fund Report

Analysis Date

Fund Size

AUD

Fund Size

Date

Indirect Cost

Ratio (ICR)

6467 Dimensional Global Small Company Trust 18/8/2000 Bronze 27/5/2015 210,750,828 30/4/2015 0.65

5812 Goldman Sachs Global Small Companies WS 9/11/1999 Neutral 25/5/2015 97,940,555 30/4/2015 1.43

3876 Hunter Hall Value Growth Trust 2/5/1994 Neutral 27/1/2015 601,299,569 31/3/2015 1.81

10701 Lazard Global Small Cap W 22/10/1997 Neutral 25/2/2015 114,303,666 4/6/2015 1.12

15897 Vanguard International Small Companies 31/10/2007 Bronze 27/4/2015 144,511,976 30/4/2015 0.39

Global Large-caps – cont'd



ETFs


Morningstar

Analyst Rating

Global Fund Report

Analysis Date

Fund Size

AUD

Fund Size

Date

Management

Costs

IAA iShares Asia 50 (AU) 13/11/2007 Bronze 8/12/2014 304,145,165 30/4/2015 0.50

IZZ iShares China Large-Cap (AU) 5/10/2004 Neutral 8/12/2014 190,499,755 30/4/2015 0.74

IVV iShares Core S&P 500 (AU) 15/5/2000 Bronze 8/12/2014 1,856,453,622 30/4/2015 0.07

IOO iShares Global 100 (AU) 10/10/2007 Bronze 8/12/2014 1,007,361,182 30/4/2015 0.40

IBK iShares MSCI BRIC (AU) 12/11/2007 Neutral 8/12/2014 41,813,296 30/4/2015 0.67

IVE iShares MSCI EAFE (AU) 14/8/2001 Bronze 8/12/2014 249,359,414 30/4/2015 0.33

IEM iShares MSCI Emerging Markets (AU) 7/4/2003 Bronze 8/12/2014 416,490,087 30/4/2015 0.69

WDIV SPDR® S&P Global Dividend ETF 1/11/2013 Neutral 22/4/2015 63,573,761 4/6/2015 0.50

WXOZ SPDR® S&P World ex Australia ETF 18/3/2013 Bronze 22/4/2015 142,462,731 4/6/2015 0.42

VEU Vanguard All-World ex-US Shares ETF 12/5/2009 Bronze 8/12/2014 474,098,260 30/4/2015 0.15

VGE Vanguard FTSE Emerging Markets Shrs ETF 18/11/2013 Bronze 22/4/2015 39,195,920 30/4/2015 0.48

VTS Vanguard US Total Market Shares ETF 12/5/2009 Bronze 8/12/2015 661,313,048 30/4/2015 0.05

LICs


Morningstar

Analyst Rating

Global Fund Report

Analysis Date

Fund Size

AUD

Fund Size

Date

Management

Expense Ratio

HHV Hunter Hall Global Value Ord 19/3/2004 Neutral 19/5/2015 340,347,323 5/6/2015 1.76

TGG Templeton Global Growth Fund Ord 28/5/1987 Neutral 19/5/2015 313,404,676 5/6/2015 1.00



Appendix 2: Portfolio Characteristics

Emerging Markets

Ticker Name Portfolio Date

# of Holdings

(Long)

% Asset in

Top 10 Holdings

Information Ratio

3 Year

Tracking Error 3 Yr

(Mo-End) AUD

11594 Aberdeen Emerging Opportunities 30/4/2015 71 43.44 -0.30 4.85

15444 Arrowstreet Emerging Markets 31/12/2014 301 25.77 0.08 2.84

16844 CFS FC W Inv-FC W Emerging Markets 28/2/2015 270 16.95 0.12 2.36

17803 CFS FC W Inv-Glb Emerging Mkts Leaders 30/4/2015 52 40.91 0.12 5.83

6468 Dimensional Emerging Markets Trust 30/4/2015 1,404 16.86 -0.27 2.93

4870 Lazard Emerging Markets Equity I 31/3/2015 77 28.80 -0.29 4.51

19031 Realindex Wholesale Emerging Markets 28/2/2015 489 28.76 -0.48 4.16

4743 Vanguard Emerging Markets Shares Index 30/4/2015 860 18.62 -0.51 0.61

Asian


# of Holdings

(Long)

% Asset in

Top 10 Holdings

Information Ratio

3 Year

Tracking Error 3 Yr

(Mo-End) AUD

10438 Aberdeen Asian Opportunities 30/4/2015 60 50.05 -0.83 4.69

17155 AMP Capital Asian Equity Gr A 31/3/2015 79 33.43 0.24 3.50

4246 BT Asian Share WS 28/2/2015 45 35.43 -0.65 5.00

15001 CFS FC W Inv-FirstChoice W Asian Share 28/2/2015 122 25.66 0.09 3.06

18337 Macquarie Asia New Stars No.1 28/2/2015 74 29.32 1.56 9.07

13432 Nikko AM New Asia 30/4/2015 55 33.45 1.02 3.39

9894 Platinum Asia 31/3/2015 153 23.19 0.95 4.79

Global Large-caps


# of Holdings

(Long)

% Asset in

Top 10 Holdings

Information Ratio

3 Year

Tracking Error 3 Yr

(Mo-End) AUD

4768 Aberdeen International Equity 30/4/2015 63 30.94 -1.63 4.50

14288 Acadian Wholesale Global Eqty Long Short 28/2/2015 191 24.16 0.66 3.89

12403 Acadian Wholesale Global Equity 28/2/2015 210 23.51 -0.32 3.01

4863 Advance International Shr Multi-Blend W 31/12/2014 1,231 9.74 -0.64 1.57

19392 Altrinsic Global Equities Trust 30/11/2014 78 25.38 -0.82 3.07

6842 AMP Capital Res Inv Leaders Intl Shr A 31/3/2015 248 27.74 -0.67 1.87

15106 AMP Capital Specialist Intl Shr WS 31/3/2015 827 25.99 0.60 1.20

7589 AMP Capital W Global Equity Value 31/3/2015 114 17.92 1.05 2.73

14739 Arrowstreet Global Equity 31/12/2014 307 15.72 1.91 2.68

9154 BlackRock Indexed Int Equity Fund 31/3/2015 3,173 9.55 0.55 0.33

3307 BlackRock Scientific Intl Equity Fund 30/4/2015 3,109 13.67 0.88 1.94

2951 BT Core Gbl Share WS 28/2/2015 436 13.12 0.48 1.54

17251 Capital International Global Equity 30/4/2015 192 19.43 -0.23 2.47

4542 Carnegie WorldWide Equity Trust 31/12/2014 31 48.54 -0.14 4.45

4672 CFS FC W Inv - CFS W Worldwide Leaders 28/2/2015 30 52.89 -1.08 4.28

4713 CFS FC W Inv-CFS W Global Resources 28/2/2015 79 45.00 -1.21 8.72

19032 CFS FC W Inv-CFS W Global Soft Commodity 28/2/2015 51 50.72 -1.37 6.50

11297 CFS FC W Inv-FirstChoice W Global Share 28/2/2015 1,036 9.51 -0.21 1.89

14573 Dimensional Global Core Equity Trust 30/4/2015 5,692 7.69 0.08 1.70

6466 Dimensional Global Large Company Trust 30/4/2015 1,585 8.63 -0.59 0.60

5841 Dimensional Global Value Trust 30/4/2015 727 18.24 0.30 3.20

4897 Fidelity Global Equities 30/4/2015 103 17.99 -0.57 2.12

16740 Franklin Global Growth W 31/3/2015 43 28.21 -0.32 3.88





# of Holdings

(Long)

% Asset in

Top 10 Holdings

Information Ratio

3 Year

Tracking Error 3 Yr

(Mo-End) AUD

15813 Generation Wholesale Global Share 28/2/2015 54 37.76 0.33 4.61

4546 Goldman Sachs International WS 30/4/2015 35 37.31 0.47 2.76

16301 Grant Samuel Epoch Gbl Eq Shldr Yld Uhgd 30/4/2015 95 17.95 -0.86 4.45

12290 GVI Aubrey Global Growth & Income Hedged 30/4/2015 39 31.49 -0.78 4.83

18451 GVI Aubrey Global Growth & Income Unhdgd 30/4/2015 39 30.70 -0.58 4.58

12160 IFP Global Franchise 31/12/2014 34 40.49 -0.26 4.37

14109 Ironbark GTP Global Equity Thematic 30/4/2015 100 22.16 -0.32 4.70

15699 Magellan Global 31/3/2015 28 50.65 -0.06 3.56

19689 MFS Concentrated Global Equity Trust W 30/4/2015 26 48.41 0.72 3.86

4532 MFS Global Equity Trust 30/4/2015 97 24.71 0.50 2.75

4776 MLC Wholesale Global Share 31/1/2015 1,145 12.33 -0.70 3.84

4364 Perpetual Wholesale International Share 28/2/2015 39 37.11 -1.19 1.93

40540 Platinum Global Fund 31/3/2015 76 23.62

6643 Platinum International Brands Fund 31/3/2015 71 24.58 -1.28 5.58

4505 Platinum International Fund 31/3/2015 194 14.67 -0.22 5.25

15362 Platinum Unhedged Fund 31/3/2015 89 30.56 -0.12 5.55

6828 PM Capital Global Companies 31/3/2015 54 51.80 1.47 7.55

16880 Realindex Wholesale Global Share 30/4/2015 1,548 8.24 -0.61 3.23

12162 Russell Global Opportunities A 31/3/2015 753 12.23 -0.28 1.91

15210 Schroder Global Value 31/1/2015 713 8.49 -0.36 2.39

14479 T. Rowe Price Global Equity 31/3/2015 145 15.21 -0.16 3.65

5291 Templeton Global Trust Fund 31/3/2015 112 16.80 0.55 4.49

19679 Threadneedle Global Equity Income Unhdgd 30/4/2015 86 19.13

3353 UBS International Share 30/4/2015 82 20.94 -0.34 2.18

4489 Vanguard International Shares Index 30/4/2015 1,567 9.70 0.57 0.21

12329 Walter Scott Global Equity 31/12/2014 58 23.98 -1.44 2.77

16734 Wingate Global Equity Fund 31/3/2015 39 34.80 -1.27 4.23

4951 Zurich Investments Gbl Thematic Shr 30/4/2015 109 17.34 -1.13 3.17

17504 Zurich Investments Unhedged Global Gr 30/4/2015 96 16.79 -0.61 3.26

Global Small-Caps


# of Holdings

(Long)

% Asset in

Top 10 Holdings

Information Ratio

3 Year

Tracking Error 3 Yr

(Mo-End) AUD

6467 Dimensional Global Small Company Trust 30/4/2015 4,056 1.60 0.41 1.57

5812 Goldman Sachs Global Small Companies WS 30/4/2015 219 9.13 0.19 3.06

3876 Hunter Hall Value Growth Trust 31/3/2015 70 40.59 -0.55 9.01

10701 Lazard Global Small Cap W 31/3/2015 92 16.05 1.64 3.10

15897 Vanguard International Small Companies 30/4/2015 3,870 1.57 0.85 0.52



ETFs


# of Holdings

(Long)

% Asset in

Top 10 Holdings

Information Ratio

3 Year

Tracking Error 3 Yr

(Mo-End) AUD

IAA iShares Asia 50 (AU) 5/6/2015 53 52.74 -0.24 3.37

IZZ iShares China Large-Cap (AU) 5/6/2015 54 57.08 8.68

IVV iShares Core S&P 500 (AU) 5/6/2015 505 17.30 1.44 0.41

IOO iShares Global 100 (AU) 5/6/2015 110 32.67 -1.02 2.46

IBK iShares MSCI BRIC (AU) 5/6/2015 316 30.26 0.09 4.95

IVE iShares MSCI EAFE (AU) 5/6/2015 934 12.09 -0.43 4.74

IEM iShares MSCI Emerging Markets (AU) 5/6/2015 867 18.85 -2.34 0.30

WDIV SPDR® S&P Global Dividend ETF 4/6/2015 121 15.69

WXOZ SPDR® S&P World ex Australia ETF 4/6/2015 1,258 9.47

VEU Vanguard All-World ex-US Shares ETF 30/4/2015 2,463 8.43 -0.89 5.25

VGE Vanguard FTSE Emerging Markets Shrs ETF 30/4/2015 1,017 16.33

VTS Vanguard US Total Market Shares ETF 30/4/2015 3,818 13.93 0.94 0.97

LICs


# of Holdings

(Long)

% Asset in

Top 10 Holdings

Information Ratio

3 Year

Tracking Error 3 Yr

(Mo-End) AUD

HHV Hunter Hall Global Value Ord 30/6/2014 61 41.83 -0.48 9.95

TGG Templeton Global Growth Fund Ord 30/6/2014 112 17.43 -0.23 5.12



Appendix 3: People

Emerging Markets

Ticker Name Lead Manager Appointed

11594 Aberdeen Emerging Opportunities Devan Kaloo 2005

15444 Arrowstreet Emerging Markets John Capeci 2006

16844 CFS FC W Inv-FC W Emerging Markets Scott Tully 2008

17803 CFS FC W Inv-Glb Emerging Mkts Leaders Jonathan Asante 2008

6468 Dimensional Emerging Markets Trust Bhanu Singh 2015

4870 Lazard Emerging Markets Equity I James M. Donald 2001

19031 Realindex Wholesale Emerging Markets Raelene de Souza, Daniel Pennell 2011, 2012

4743 Vanguard Emerging Markets Shares Index Rodney Comegys 2015

Asian


10438 Aberdeen Asian Opportunities Hugh Young 1992

17155 AMP Capital Asian Equity Gr A Patrick Ho 2014

4246 BT Asian Share WS Samir Mehta 2014

15001 CFS FC W Inv-FirstChoice W Asian Share Scott Tully 2007

18337 Macquarie Asia New Stars No.1 John Bugg, Sam Le Cornu 2008, 2008

13432 Nikko AM New Asia Peter Sartori, Eng-Teck Tan 2005, 2006

9894 Platinum Asia Joseph Lai 2011

Global Large-caps


4768 Aberdeen International Equity Stephen Docherty 2003

14288 Acadian Wholesale Global Eqty Long Short Rui Tang; Alexandre Voitenok; Christopher Zani; Adoito Haroon 2011, 2012, 2014, 2014

12403 Acadian Wholesale Global Equity John R. Chisholm; Matthew Rothman; Alexandre Voitenok 2005, 2011, 2012

4863 Advance International Shr Multi-Blend W Mark Vrkic 2007

19392 Altrinsic Global Equities Trust John Hock; John L. Devita; Rehan Chaudhri 2011, 2011, 2011

6842 AMP Capital Res Inv Leaders Intl Shr A Tanya Debakhapouve; Trent Loi 2006, 2012

15106 AMP Capital Specialist Intl Shr WS Tanya Debakhapouve; Trent Loi 2006, 2012

7589 AMP Capital W Global Equity Value Kevin F. Simms; Avi Lavi; Takeo Aso 2001, 2001, 2002

14739 Arrowstreet Global Equity Peter Rathjens 2006

9154 BlackRock Indexed Int Equity Fund Karsten Kumpf 2006

3307 BlackRock Scientific Intl Equity Fund Karsten Kumpf; Michael McCorry 2006, 2010

2951 BT Core Gbl Share WS Jacques A. Friedman 2010

17251 Capital International Global Equity Lionel M. Sauvage; Darcy B. Kopcho; Rudolf M. Staehelin; Eric H. Stern 2009, 2009, 2009, 2011

4542 Carnegie WorldWide Equity Trust Bengt Seger; Bo Knudsen; Lars Wincentsen 2013, 2013, 2013

4672 CFS FC W Inv - CFS W Worldwide Leaders Jonathan Asante; Stephen Deane; Stuart Paul 2013, 2013, 2013

4713 CFS FC W Inv-CFS W Global Resources Todd Warren; Joanne Warner; Tal Lomnitzer 2003, 2007, 2011

19032 CFS FC W Inv-CFS W Global Soft Commodity Renzo Casarotto; Skye Macpherson 2009, 2009

11297 CFS FC W Inv-FirstChoice W Global Share Peter Dymond; Scott Tully; Andrew Howlett 2002, 2002, 2006

14573 Dimensional Global Core Equity Trust Bhanu Singh 2015

6466 Dimensional Global Large Company Trust Bhanu Singh 2015

5841 Dimensional Global Value Trust Bhanu Singh 2015

4897 Fidelity Global Equities Amit Lodha 2010

16740 Franklin Global Growth W Coleen F. Barbeau; Donald G. Huber 2008, 2008




15813 Generation Wholesale Global Share Mark Ferguson; Miguel Nogales 2007, 2007

4546 Goldman Sachs International WS Nicolas M. Choumenkovitch 2000

16301 Grant Samuel Epoch Gbl Eq Shldr Yld Uhgd Eric L. Sappenfield; Michael A. Welhoelter; William W. Priest 2008, 2008, 2008

12290 GVI Aubrey Global Growth & Income Hedged Andrew Dalrymple; Sharon Bentley-Hamlyn 2006, 2006

18451 GVI Aubrey Global Growth & Income Unhdgd Andrew Dalrymple; Sharon Bentley-Hamlyn

12160 IFP Global Franchise Hassan Elmasry; Jayson Vowles; Michael Allison; Paras C. Dodhia 2004, 2004, 2004, 2004

14109 Ironbark GTP Global Equity Thematic Oliver S. Kratz 2003

15699 Magellan Global Hamish Douglass 2007

19689 MFS Concentrated Global Equity Trust W David R. Mannheim; Roger M. Morley 2009, 2012

4532 MFS Global Equity Trust David R. Mannheim; Roger M. Morley 1997, 2009

4776 MLC Wholesale Global Share Myooran Mahalingam; Jonathan Armitage 2006, 2011

4364 Perpetual Wholesale International Share John R. Ryan 2010

40540 Platinum Global Fund Kerr Neilson 2014

6643 Platinum International Brands Fund Simon Trevett 2002

4505 Platinum International Fund Kerr Neilson; Andrew Clifford 1995, 2011

15362 Platinum Unhedged Fund Clay Smolinski 2014

6828 PM Capital Global Companies Paul Moore; Ashley Pittard 1998, 1999

16880 Realindex Wholesale Global Share Andrew Francis; Raelene de Souza; Daniel Pennell 2008, 2009, 2012

12162 Russell Global Opportunities A Graeme Allan 2015

15210 Schroder Global Value David Philpotts; Justin Abercrombie 2005, 2005

14479 T. Rowe Price Global Equity R. Scott Berg 2012

5291 Templeton Global Trust Fund Peter Wilmshurst 2000

19679 Threadneedle Global Equity Income Unhdgd Jonathan Crown; Stephen Thornber 2012, 2012

3353 UBS International Share Nicholas Irish; Charles Burbeck 2008, 2013

4489 Vanguard International Shares Index Rodney Comegys 2015

12329 Walter Scott Global Equity Charlie Macquaker; Jane Henderson 2005, 2005

16734 Wingate Global Equity Fund Chad Padowitz 2008

4951 Zurich Investments Gbl Thematic ShrAndrew Norris; Irene T. Cheng; Nicolas Bratt; Steve M. Wreford;

John King2003, 2003, 2003, 2010, 2013

17504 Zurich Investments Unhedged Global Gr Keith Creveling, Brent Puff 2005, 2008

Global Small-Caps


6467 Dimensional Global Small Company Trust Bhanu Singh 2015

5812 Goldman Sachs Global Small Companies WS Jamie A. Rome; Simon H. Thomas 1999, 2002

3876 Hunter Hall Value Growth Trust Peter Hall; James McDonald; Jonathan Rabinovitz 1994, 2005, 2012

10701 Lazard Global Small Cap W Edward Rosenfeld 2012

15897 Vanguard International Small Companies Rodney Comegys 2015




ETFs


IAA iShares Asia 50 (AU) Management Team N. Ap

IZZ iShares China Large-Cap (AU) Management Team N. Ap

IVV iShares Core S&P 500 (AU) Management Team N. Ap

IOO iShares Global 100 (AU) Management Team N. Ap

IBK iShares MSCI BRIC (AU) Management Team N. Ap

IVE iShares MSCI EAFE (AU) Management Team N. Ap

IEM iShares MSCI Emerging Markets (AU) Management Team N. Ap

WDIV SPDR® S&P Global Dividend ETF Management Team N. Ap

WXOZ SPDR® S&P World ex Australia ETF Management Team N. Ap

VEU Vanguard All-World ex-US Shares ETF Management Team N. Ap

VGE Vanguard FTSE Emerging Markets Shrs ETF Management Team N. Ap

VTS Vanguard US Total Market Shares ETF Management Team N. Ap

LICs


HHV Hunter Hall Global Value Ord Peter Hall 2004

TGG Templeton Global Growth Fund Ord Peter Wilmshurst 2000



Appendix 4: Style Box Breakdowns

Emerging Markets

Ticker Name

Equity Style

Box (Long)

Market Cap

Giant % (Long)

Market Cap

Large % (Long)

Market Cap

Mid % (Long)

Market Cap

Small % (Long)

Market Cap

Micro % (Long)

11594 Aberdeen Emerging Opportunities 38.10 39.09 11.68 0.20 0.00

15444 Arrowstreet Emerging Markets 45.89 33.00 13.38 0.58 0.03

16844 CFS FC W Inv-FC W Emerging Markets 48.69 27.67 10.73 1.60 0.09

17803 CFS FC W Inv-Glb Emerging Mkts Leaders 37.45 37.18 15.19 0.00 0.00

6468 Dimensional Emerging Markets Trust 28.04 34.91 19.71 9.70 3.00

4870 Lazard Emerging Markets Equity I 45.65 35.03 10.49 0.97 0.00

19031 Realindex Wholesale Emerging Markets 53.76 29.05 7.63 0.51 0.00

4743 Vanguard Emerging Markets Shares Index 46.67 36.29 11.32 0.35 0.00

Asian

Ticker Name

Equity Style

Box (Long)

Market Cap

Giant % (Long)

Market Cap

Large % (Long)

Market Cap

Mid % (Long)

Market Cap

Small % (Long)

Market Cap

Micro % (Long)

10438 Aberdeen Asian Opportunities 47.98 34.44 3.06 0.49 0.00

17155 AMP Capital Asian Equity Gr A 50.45 22.97 15.76 2.01 0.50

4246 BT Asian Share WS 32.16 41.98 17.68 1.32 3.03

15001 CFS FC W Inv-FirstChoice W Asian Share 49.13 32.09 7.46 1.63 0.90

18337 Macquarie Asia New Stars No.1 1.27 34.04 47.53 4.54 0.00

13432 Nikko AM New Asia 44.27 25.78 17.69 5.82 0.00

9894 Platinum Asia 35.19 30.44 13.74 4.32 0.82

Global Large-caps

Ticker Name

Equity Style

Box (Long)

Market Cap

Giant % (Long)

Market Cap

Large % (Long)

Market Cap

Mid % (Long)

Market Cap

Small % (Long)

Market Cap

Micro % (Long)

4768 Aberdeen International Equity 70.67 23.02 0.00 0.00 0.00

14288 Acadian Wholesale Global Eqty Long Short 61.66 11.39 25.31 9.70 17.04

12403 Acadian Wholesale Global Equity 36.26 18.96 21.54 7.98 13.15

4863 Advance International Shr Multi-Blend W 37.72 33.92 16.34 3.65 0.57

19392 Altrinsic Global Equities Trust 43.13 37.82 12.59 2.11 0.00

6842 AMP Capital Res Inv Leaders Intl Shr A 42.01 26.36 13.85 1.29 0.33

15106 AMP Capital Specialist Intl Shr WS 37.05 32.32 14.49 1.74 0.42

7589 AMP Capital W Global Equity Value 35.44 37.67 19.69 3.12 0.00

14739 Arrowstreet Global Equity 38.49 36.61 14.59 2.97 0.25

9154 BlackRock Indexed Int Equity Fund 52.25 33.82 12.77 0.08 0.01

3307 BlackRock Scientific Intl Equity Fund 39.39 44.43 19.62 0.79 0.07

2951 BT Core Gbl Share WS 32.96 40.15 15.88 0.05 0.00

17251 Capital International Global Equity 53.05 26.78 15.09 1.46 0.00

4542 Carnegie WorldWide Equity Trust 86.16 8.87 2.58 0.00 0.00

4672 CFS FC W Inv - CFS W Worldwide Leaders 25.90 40.58 14.79 0.00 0.00

4713 CFS FC W Inv-CFS W Global Resources 36.17 30.44 16.79 10.09 1.76

19032 CFS FC W Inv-CFS W Global Soft Commodity 6.40 49.03 30.17 6.38 3.59

11297 CFS FC W Inv-FirstChoice W Global Share 42.06 31.23 15.73 4.58 1.85

14573 Dimensional Global Core Equity Trust 36.53 25.58 24.27 10.40 2.64

6466 Dimensional Global Large Company Trust 48.17 33.34 17.82 0.14 0.01

5841 Dimensional Global Value Trust 44.89 30.63 22.28 2.01 0.04

4897 Fidelity Global Equities 48.49 24.97 20.80 1.51 0.32

16740 Franklin Global Growth W 16.01 37.40 42.81 0.97 0.00



Ticker Name

Equity Style

Box (Long)

Market Cap

Giant % (Long)

Market Cap

Large % (Long)

Market Cap

Mid % (Long)

Market Cap

Small % (Long)

Market Cap

Micro % (Long)

15813 Generation Wholesale Global Share 27.55 22.52 41.18 0.97 0.00

4546 Goldman Sachs International WS 36.88 49.42 8.83 0.00 0.00

16301 Grant Samuel Epoch Gbl Eq Shldr Yld Uhgd 46.67 37.03 11.97 1.51 0.00

12290 GVI Aubrey Global Growth & Income Hedged 30.14 35.70 26.90 0.00 0.00

18451 GVI Aubrey Global Growth & Income Unhdgd 28.23 35.52 28.08 0.00 0.00

12160 IFP Global Franchise 53.82 32.07 9.73 0.09 0.00

14109 Ironbark GTP Global Equity Thematic 36.89 35.11 19.53 5.59 0.00

15699 Magellan Global 56.47 28.54 0.00 0.00 0.00

19689 MFS Concentrated Global Equity Trust W 63.48 31.33 3.09 0.00 0.00

4532 MFS Global Equity Trust 45.96 44.71 8.20 0.13 0.00

4776 MLC Wholesale Global Share 49.97 27.36 15.05 1.55 0.00

4364 Perpetual Wholesale International Share 40.07 24.02 18.34 2.83 0.00

40540 Platinum Global Fund 33.92 15.53 13.25 8.03 0.00

6643 Platinum International Brands Fund 12.07 34.83 21.84 10.82 3.73

4505 Platinum International Fund 41.18 21.26 13.93 8.32 0.26

15362 Platinum Unhedged Fund 37.54 24.98 13.41 9.86 1.31

6828 PM Capital Global Companies 53.18 29.63 8.99 10.76 0.97

16880 Realindex Wholesale Global Share 55.66 31.40 9.44 0.42 0.08

12162 Russell Global Opportunities A 44.49 30.52 13.24 1.35 0.00

15210 Schroder Global Value 31.26 29.76 24.73 9.49 1.53

14479 T. Rowe Price Global Equity 35.16 40.24 14.27 0.00 0.00

5291 Templeton Global Trust Fund 52.53 30.70 7.61 3.88 0.01

19679 Threadneedle Global Equity Income Unhdgd 33.32 42.53 15.57 4.15 0.00

3353 UBS International Share 54.92 28.49 11.42 0.49 1.01

4489 Vanguard International Shares Index 52.55 33.74 12.90 0.05 0.01

12329 Walter Scott Global Equity 67.63 22.99 6.02 0.05 0.00

16734 Wingate Global Equity Fund 28.57 17.19 4.39 2.83 0.00

4951 Zurich Investments Gbl Thematic Shr 57.33 32.03 4.47 0.00 0.00

17504 Zurich Investments Unhedged Global Gr 31.88 42.61 21.11 0.00 0.00

Global Small-Caps

Ticker Name

Equity Style

Box (Long)

Market Cap

Giant % (Long)

Market Cap

Large % (Long)

Market Cap

Mid % (Long)

Market Cap

Small % (Long)

Market Cap

Micro % (Long)

6467 Dimensional Global Small Company Trust 0.00 0.38 40.99 45.37 12.78

5812 Goldman Sachs Global Small Companies WS 0.00 0.00 23.12 35.41 40.18

3876 Hunter Hall Value Growth Trust 11.48 10.22 22.01 29.99 11.80

10701 Lazard Global Small Cap W 0.00 1.05 44.47 39.64 9.87

15897 Vanguard International Small Companies 0.00 0.46 50.16 39.52 9.38




ETFs

Ticker Name

Equity Style

Box (Long)

Market Cap

Giant % (Long)

Market Cap

Large % (Long)

Market Cap

Mid % (Long)

Market Cap

Small % (Long)

Market Cap

Micro % (Long)

IAA iShares Asia 50 (AU) 95.18 2.95 0.00 0.00 0.00

IZZ iShares China Large-Cap (AU) 93.31 0.72 0.00 0.00 0.00

IVV iShares Core S&P 500 (AU) 51.43 35.07 12.14 0.09 0.00

IOO iShares Global 100 (AU) 85.47 10.59 0.00 0.00 0.00

IBK iShares MSCI BRIC (AU) 62.26 25.95 3.25 0.00 0.42

IVE iShares MSCI EAFE (AU) 55.22 31.93 8.58 0.00 0.01

IEM iShares MSCI Emerging Markets (AU) 47.63 30.59 10.31 0.41 0.00

WDIV SPDR® S&P Global Dividend ETF 17.73 30.35 37.08 8.55 3.10

WXOZ SPDR® S&P World ex Australia ETF 52.34 35.07 9.85 0.24 0.06

VEU Vanguard All-World ex-US Shares ETF 49.79 31.78 11.46 0.32 0.01

VGE Vanguard FTSE Emerging Markets Shrs ETF 43.55 33.87 11.69 1.31 0.39

VTS Vanguard US Total Market Shares ETF 41.43 29.43 18.91 6.37 2.59

LICs

Ticker Name

Equity Style

Box (Long)

Market Cap

Giant % (Long)

Market Cap

Large % (Long)

Market Cap

Mid % (Long)

Market Cap

Small % (Long)

Market Cap

Micro % (Long)

HHV Hunter Hall Global Value Ord 11.19 7.10 15.35 41.17 9.48

TGG Templeton Global Growth Fund Ord 53.33 31.23 8.14 3.30 1.15



Copyright, Disclaimer & Other Information

Morningstar Australasia Pty Ltd ('Morningstar') ABN: 95 090

665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.) of

Level 36 Australia Square 264 George Street Sydney NSW

2000 is the provider of the general advice ('the service')

provided in this report. The service is provided through

research including the profiling and rating of managers and

products. Morningstar does not receive commissions for the

service and does not charge companies to be rated. Where

Morningstar provides the service through the provision of

research it is remunerated by subscribers paying a

subscription fee. This fee is variable depending on the

subscription and will vary depending upon the individual's

specific requirements, particularly to the ongoing use and

distribution of the service. Subscriptions are paid as agreed

with individual clients. Morningstar representatives are

remunerated by salary and do not directly receive any

commissions or fees. They may be eligible for an annual

performance payment which is discretionary and based on

reaching agreed performance levels.

Please refer to our Financial Services Guide (FSG) for more

information at www.morningstar.com.au/s/fsg.pdf

Copyright

© The material contained in this document is copyright of

Morningstar, Inc., its licensors and any related bodies

corporate that are involved in the document's creation. All

rights reserved. Except as permitted by the Copyright Act

1968, you may not reproduce, transmit, disseminate, sell or

publish this information without the written consent of

Morningstar, Inc. provided that you are entitled to use the

information for your internal purposes.

Trademarks

Morningstar and the Morningstar logo are registered

trademarks of Morningstar, Inc.

Disclaimer

All care has been taken in preparing this report but to the

extent that it is based on information received from other

parties no liability is accepted by Morningstar for errors

contained in the report or omissions from the report.

Morningstar gives neither guarantee nor warranty nor

makes any representation as to the correctness or

completeness of the information presented. Morningstar

determines ratings on the basis of information disclosed to

Morningstar by investment product providers and on past

performance of products. Past performance is no guarantee

of future performance.

Disclosure

If you wish to obtain further information regarding

our services, we recommend you visit

www.global.morningstar.com/au/researchdocuments.

Morningstar may provide product issuers with research or

consulting services for the standard fee. In relation to

consulting services, Morningstar may provide product issuers

with advice in relation to asset allocation information.

Morningstar uses quantitative data and qualitative research

opinions as its methodology when preparing ratings opinions

and research in respect of financial service providers. The

methodology weighs the relative strengths and weaknesses

of each manager/product relative to its peers.

Level 36, Australia Square

264 George Street

Locked Bag 25, Royal Exchange

Sydney NSW 2000

Telephone +61 2 9276 4446

http://arc2.morningstar.com.au

56115 global equities sector wrap-up cs4 - morningstar,...

Documents