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Mercer survey reveals best Australian share fund of 2017

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.

Two of its biggest contributors to the strong performance for the year were BWX Limited (ASX: BWX) and CSL Limited (ASX: CSL).

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”.

For the upcoming year the fund is looking at CSL, Treasury Wine Estates Ltd (ASX: TWE) and Reliance Worldwide Corporation Ltd (ASX: RWC) to deliver big returns.

Its portfolio has also added shares of BHP Billiton Limited (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Wagners Holding Company Limited (ASX: WGN).

Mr Beaumont said “We try to go for the reasonably predictable, low risk franchises that can build earnings and value over time.”

Some of the other top performing funds in the Mercer survey believe that Treasury Wine Estates, CSL, Cochlear Limited (ASX: COH) and Fortescue Metals Group Limited (ASX: FMG) are opportunities.

Foolish takeaway

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.

Instead, I think these top growth shares are trading at much better value today.

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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.

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