The Mercer survey of Australian share funds for 2017 showed that a fund run by Bennelong Australian Equity Partners was the top performer, it generated a return of 30% before fees. It wasn’t just a one trick pony performance either, it generated average returns per annum of 24% and 22% over the past three and five years.
The fund manager attributes its strong performance to shares which are growing strongly and have overseas revenue.
Investment director Julian Beaumont said “The businesses we are buying are defensive and resilient, it’s medicine and medical services, wine, pizza, skincare and gaming”.
Mr Beaumont said “We try to go for the reasonably predictable, low risk franchises that can build earnings and value over time.”
Clearly, these top performing fund managers know what they’re doing but personally I wouldn’t want to invest in resource companies because it can be very hard to time when to buy and sell them.
Of the above shares I think it’s hard to go wrong with CSL, Cochlear, Treasury Wines, BWX and Reliance Worldwide Corporation over the long-term. However, all these shares are trading fairly expensively so it could be wise to wait for a cheaper entry price to buy any of them.
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Motley Fool contributor Tristan Harrison owns shares of BWX Limited. The Motley Fool Australia owns shares of and has recommended BWX Limited. The Motley Fool Australia has recommended Cochlear Ltd. and Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.