Factsheet BT Wholesale Partner Australian Shares Value Fund by maclaren1


									                                                                    BT Wholesale Partner
                                                                    Australian Shares
                                                                    Value (GMO)
                                                                    September 2009

                                                                   Fund facts
BT Partner Funds – BT presents the world’s best equity             Minimum suggested investment period                    5 years
style managers                                                     Date of inception                                      November 2002
The BT Partner Funds proposition is to select and                  Risk profile                                           Dynamic
continuously monitor the world’s best equity investment            Product size ($m)                                      $312.4
managers, domestically and from around the world, in the
                                                                   Management fee                                         0.89% pa
three style classifications of Growth, Value and Core.
                                                                   APIR code                                              BTA0243AU
Fund objective
The Fund aims to provide an overall return that exceeds it
benchmark over the recommended investment timeframe.               Performance vs Benchmark (% pa)
This Fund invests in Australian shares with a value                30.0
investment style, and is currently managed by GMO.                 25.0
About value investment style                                       20.0
Value investment managers look for bargains—companies
that have fallen out of favour with the market and are                                                                            9.9
                                                                                                                                          11.0    11.3
                                                                                                  8.5                    8.9
currently undervalued. They purchase shares below their             10.0
‘intrinsic value’ where they expect that value to be                 5.0
recognised by other investors in the future.                                                            -0.1
About GMO
GMO Australia (GMO) was established in late 1995 and is a                                                                  Fund         Benchmark
partnership between Grantham, Mayo, Van Otterloo & Co              -10.0
                                                                              3              1               3                5              Since
LLC (GMO LLC) and key Australian investment management                      mont hs        year            years            years           Incept .
GMO:                                                                   Investment returns are Pre fee Pre tax.
    is an active quantitative manager with a growth                    Benchmark is the S&P/ASX 300 Accumulation Index.
    investment style
    has a robust quantitative investment process developed
    in conjunction with the global GMO group but specifically      Sector allocation                           Co nsumer Discretio nary: 5.5%
    tailored to the Australian market to identify superior value                                               Co nsumer Staples: 8.9%
    companies                                                                                                  Energy: 4.7%
    holds an investment philosophy that markets are driven                                                     Financial ex P ro perty Trusts : 39.0%
    by investor sentiment in the short term but that economic                                                  Health Care: 2.6%
    fundamentals determine fair value in the longer term. The                                                  Industrials: 4.9%
    combination of those drivers results in long trends in                                                     Info rmatio n Techno lo gy: 0.8%
    prices followed by reversals. They capitalise on both of
                                                                                                               M aterials: 21.2%
    these effects by using both momentum and value
                                                                                                               P ro perty Trusts : 3.9%
                                                                                                               Teleco mmunicatio n Services: 6.0%
    their quantitative style allows them to continually monitor
                                                                                                               Utilities: 1.5%
    over 500 companies listed on the ASX. This produces a
    portfolio diversified across a large number of stocks which                                                Cash: 1.0%
    they believe improves the consistency and sustainability
    of performance over time.
    has a focus on rigorous research and development of
    quantitative models, as well as on efficient execution of
Manager history                                                                  Top 10 holdings
Manager                         Appointed             Replaced                   Stock                                                  Allocation %
GMO Australia                   November 2002                                    BHP Billiton                                              12.6%
                                                                                 Commonwealth Bank of Australia                             6.7%
                                                                                 Westpac Banking                                            6.2%
Commentary from GMO                                                              Telstra                                                    5.7%
The portfolio underperformed its benchmark for the quarter.                      National Australia Bank                                    5.6%
Globally, signs continue to point to slower growth. The US                       Macquarie Group                                            4.6%
has increasing unemployment, mixed economic news, and                            Australia & New Zealand Banking Group                      4.2%
questionable valuations. The story is not much different in                      QBE Insurance Group                                        3.9%
Europe. The underweight to the most expensive stocks has
started to benefit the portfolio whereas in the past these were                  Rio Tinto                                                  2.9%
more momentum oriented and hurt. At the sector level,                            Woolworths                                                 2.6%
underweights to energy, materials, and gold added value as
well as overweights to higher quality and cheaper
discretionary stocks and financials. An overweight to telecom                    Key performance contributors and detractors
stocks helped while an underweight to the volatile LPT’s hurt
                                                                                 Key performers                                        Contribution %
as they jumped in September. The price momentum and
intrinsic value streams outperformed the benchmark while                         Macquarie Group                                           0.5%
earnings revisions and composite value underperformed. T                         Qantas Airways                                            0.2%
                                                                                 National Australia Bank                                   0.2%
Outlook from GMO                                                                 Suncorp-Metway                                            0.1%
We continue to see market volatility in the near term. While it                  Fairfax Media                                             0.1%
appears Australia, and the world, has escaped from the most
dire of forecasts, it also appears securities are priced for a
                                                                                 Key detractors                                         Detraction %
return to the glory days of market returns. For the current
market run to continue, securities will need to deliver on very                  Telstra                                                   -0.4%
high expectations. Some will fill that bill, but others will                     Caltex Australia                                          -0.3%
disappoint. We are positioned in the firms with a history of                     AMP                                                       -0.1%
stable long term earnings and attractive valuations.                             Lion Nathan                                               -0.1%
                                                                                 Leighton Holdings                                         -0.1%

BT Funds Management Limited ABN 63 002 916 458 is the responsible entity of the BT Partner Australian Value 1 Fund (Fund) and is the issuer of
units in the Fund. A Product Disclosure Statement (PDS) is available for the Fund and can be obtained by calling 1800 813 886 or online at
www.bt.com.au . You should obtain and consider the PDS before deciding whether to acquire, or continue to hold, units in the Fund. This fact sheet
has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information,
consider its appropriateness, having regard to your objectives, financial situation and needs. Total returns for the Fund are calculated to the last day of
each month using exit prices. Total return figures assume distributions are reinvested and issuer fee and expenses are deducted but contribution fees
(where payable) and taxes are not. Returns are historical and past performance is not a reliable indicator of future performance. This fact sheet is
updated quarterly and is accurate at the time of publishing. We may change the investment characteristics of the Fund at any time.

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