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NZX-50 sector and stock performance 2013-2018

by Raghav Singh, Sharesight | Feb 6th 2019

Since investors using Sharesight typically tend to lean towards a ‘buy and hold’ investing philosophy, it’s important to look at returns over longer periods. In this post, we’re examining the returns of stocks in New Zealand’s NZX-50 index and the corresponding returns for each sector and key stocks in each sector of the index in order to look for underlying trends over the last 5 years (2013-2018).

Sharesight performance calculation methodology

Sharesight calculates annualised returns that include dividends -- we do this using a dollar weighted return calculation method when there are multiple buy/sell trades within a measurement period. For this exercise we "purchased" a single parcel of each stock on 1 Jan 2013 and used Sharesight’s performance report to calculate the annualised return including dividends (total annualised return) through to 31 December 2018. In this post we've used Sharesight's compounded annual return method to calculate these annualised returns.

NZX-50 performance 2013-2018

NZX-50 performance

Using the Smartshares NZ Top 50 ETF (FNZ) as a proxy to capture the dividend and capital gain performance of the NZX-50 index in Sharesight (read our rationale for benchmarking your portfolio against ETFs), we find an extremely strong performance for the index through to August 2014 before falling away, underpinning the importance of understanding the impact of holding periods in your investment performance.

Over the 5 years from 1 January 2013 to 31 December 2018, NZX:FNZ recorded a 13.82% total annual return, with 6.03% of that return coming from dividends.

Performance of each sector in the NZX-50

Sharesight uses the FactSet Revere Business Industry Classification System to classify companies by industry and sector (when looking at a holding in Sharesight, this information is available in the ‘instrument detail’ section).

Performance of each sector in NZX 50

We used this sector break down to split out the performance by sector within the NZX-50 over the 2013-2018 period. Here’s that performance by sector -- simply click on a sector for more info:

NZX-50 performance by sector 2013-2018

NZX-50 performance by sector compounded

Communication: 15.10%
Consumer non-durables: 66.15%
Consumer services: 12%
Energy minerals: 9.33%
Finance: 7.80%
Health services: 15.94%
Health technology: 27.94%
Miscellaneous: -2.07%
Non-energy minerals: -0.87%
Process industries: 9.70%
Producer manufacturing: -13.55%
Retail trade: 7.71%
Technology services: 2.21%
Transportation: 19.45%
Utilities: 14.40%
All return figures per annum total return including dividends

1. Communication: 15.10%

NZX communications sector performance

SPK - Spark New Zealand limited: 17.14%

Dec 18 2015: Spark New Zealand concluded acquisition of CCl
Nov 8 2018: Spark moved into sports content production
Nov 22 2018: Spark announced new emerging technologies entity

CNU - Chorus limited (NS): 12.87%

Nov 5 2015: Chorus supported direction of government review of telecommunication regulation
Nov 10 2017: Chorus revealed technology upgrade for schools, students
Oct 25 2018: Chorus’s work in rural NZ recognised on world stage

2. Consumer non-durables: 66.15%

ATM - The A2 Milk Company limited: 66.15%

Nov 19 2013: A2 Corporations accelerated UK market development
Jan 25 2017: A2 Milk Company continued to expand in the US.
Aug 14 2018: The A2 Milk Company renewed strategic arrangements with China state farm at official signing ceremony with Hon Steven Ciobo

3. Consumer services: 12%

RBD - Restaurant Brands New Zealand limited: 24.80%

Oct 15 2016: Restaurant Brands acquired Hawaiian taco bell and pizza hut franchisee
Mar 3 2017: Yum! approved the acquisition of pacific island restaurants
Sep 3 2018: Restaurant Brands sold off Starbucks Coffee business in New Zealand

SKC - SKYCITY Entertainment group Limited: 4.79%

Oct 6 2016: Sky City was named Youth Employer of the year
Aug 13 2018: Sky Tower open day raised $9000 for youth line
Sep 4 2018: Sky City partnered with service providers for gambling harm awareness week

SKT Sky network television limited: -3.29%

4. Energy minerals: 9.33%

ZEL - Z Energy limited: 14.38%

Dec 14 2015: Z energy in S&P/NZX 10 index
Jun 30 2016: Z energy completes the purchase of a 100% share in Chevron Australia( which is now referred to as Caltex)
Dec 7 2018: Z energy to participate in the government enquiry into the Auckland fuel supply disruption

NZR - The New Zealand Refining Company Limited: 3.98%

Dec 18 2015: New Zealand Refinery signed gas agreement with Vector Gas
Feb 2 2018: Refinery welcomed council finding on pipeline rupture

5. Finance: 7.80%

VHP - Vital Healthcare Property Trust: 12.99%

Aug 11 2014: Vital diversified with first Western Australian acquisition
Nov 21 2016: Vital healthcare acquired Ekera medical center and strategic sites
Dec 7 2018: Vitals manager and board of Northwest healthcare rejected proposals from three unitholders (Accident Compensation Corporation, ANZ New Zealand Investments Limited and Mint Asset Management Limited) put forward for consideration at AGM

GMT - Goodman Property Trust: 11.97%

Jan 21 2016: Goodman opened 1.5 Million sqm of logistics space for the industry across Europe
Oct 24 2018: Goodman opened Chongqing airport logistics park in China
Nov 27 2018: Goodman acquired prime midlands site for development of high quality logistics space

PFI - Property for Industry limited: 11.42%

Oct 25 2015: Property for industry limited sold a property at 85 Cavendish drive
Oct 24 2018: Property for industry limited acquired 12 Hautu Drive Manukau
Dec 13 2016: Property for industry limited sold a property at 27 Zelanian drive

6. Health services: 15.94%

Health Sector NZX performance

7. Health technology: 27.94%

FPH - Fisher & Paykel Healthcare corporation limited: 34.15%

May 12 2015: Fisher & Paykel healthcare introduced new range of products for AIRVO nasal high flow systems
Nov 13 2017: Fisher & Paykel healthcare won patent case against ResMed in UK court
Mar 23 2018: Ground breaking research showed efficacy of optiflow nasal high flow therapy

EBO - Ebos group limited: 19.71%

Jun 14 2013: Ebos shareholders agreed to the $1.1 Billion acquisition with Symbion
Nov 16 2015: Ebos group entered agreement to acquire red seal
Dec 24 2018: Ebos group completed acquisition of Terry white group

8. Miscellaneous: -2.07%

FSF - Fonterra shareholders fund: -2.07%

Dec 16 2015: Fonterra announced sale of Australian yoghurt dairy desserts business
Mar 8 2016: Fonterra confirmed new appointment to milk price panel
Feb 21 2018: Fonterra & a2 Milk company formed global relationship

9. Non-energy minerals: -0.87%

STU - Steel and Tube Holdings ltd: 0.71%

Dec 19 2014: S&T court proceeding against the claim by Lewis holding ltd
Aug 25 2015: S&T to acquire the assets of Canterbury based Aquaduct NZ
Oct 15 2018: Revised NBIO of $1.90 to acquire S&T from Fletcher building.

FBU - Fletcher Building ltd: 2.59%

Oct 16 2014: Tasman insulation subsidiary consolidated NZ manufacturing operations
Nov 17 2017: Fletcher building announced changes to executive team
Oct 3 2018: Fletcher building confirmed proposal to acquire Steel & Tube

10. Process industries: 9.70%

Process industries NZX sector performance

SKL - Skellerup Holdings limited: 9.70%

Nov 27 2014: Skellerup began construction of a 18,900 sqm facility at Wigram
Apr 29 2016: Lower commodity prices reduced forecast earnings of FY 16
July 11 2018: Skellerup invests in liquid silicone rubber with US$1.1 million investment for a 35% stake in privately owned US company Sim Lim Technic LLC

11. Producer manufacturing: -13.55%

MPG - Metro Performance Glass limited: -13.55%

Nov 19 2018: Metro performance expects a change in the competitive landscape in the mid of year 2020

12. Retail trade: 7.71%

KMD - Kathmandu Holding limited: 10.88%

Jun 12 2013: Kathmandu holdings ltd joined the ASX 200 index
Jun 8 2016: Kathmandu holdings ltd lodged claim for recovery of takeover cost with the NZ high court over 2015 takeover bid from Briscoe Group Limited
Mar 20 2018: Kathmandu announced acquisition of Oboz Footwear LLC

WHS - The Warehouse Group limited: 2.66%

Apr 10 2014: The Warehouse Group completed $115 million capital raise
Sep 11 2017: The Warehouse Group confirmed the sale of its financial services business
May 1 2018: The Warehouse Group announced executive team changes

13. Technology services: 2.21%

TME - Trade Me Group limited: 12.68%

Dec 9 2014: Trade Me announced plans to buy viewing tracker rental inspection website
Jan 12 2015: Trade Me acquired stake in peer-to-peer lender Harmoney
Jul 17 2017: Trade Me up announced plans to acquire Motorcentral

OHE - Orion Health Group limited: -33.61%

Dec 22 2014: Orion health platform went live in Cal INDEX
Nov 8 2016: Orion health signed agreement with leading Canadian province
Jul 3 2018: Private equity technology investor Hg agrees to deal over OHE Rhapsody and population health businesses

14. Transportation: 19.45%

Transportation NZX sector performance

AIR - Air New Zealand: 24.97%

Dec 12 2014: Air New Zealand announced the airline will fly direct to Argentina
Sep 2 2015: Air New Zealand and Air China launch new alliance route
Apr 4 2018: Air NZ and Virgin Australia end Trans-Tasman alliance

AIA - Auckland International Airport limited: 21.90%

Dec 10 2014: AIA inaugural China Eastern Airlines seasonal flight
Aug 24 2016: AIA welcomed Tianjin airlines to NZ
Mar 7 2018: AIA sale of North Queensland airport completed

POT - Port of Tauranga ltd: 15.30%

Aug 13 2013: Tauranga and Timaru ports agreed on strategic alliance
Jan 13 2014: Tauranga announced a conditional agreement with Selwyn district council
Aug 24 2018: Cargo growth produced record year for Port of Tauranga

15. Utilities: 14.40%

Utilities NZX sector performance

MEL - Meridian energy limited: 23.69%

Jul 1 2013: Meridian sold its share in Macarthur wind farm
Nov 17 2015: Meridian subsidiary Powershop entered deal with RWE npower
Dec 22 2017: Meridian entered into conditional agreement with Trustpower Limited for the purchase of GSP Energy Pty Ltd hydro assets

TPW - Trustpower Limited: 21.82%

Oct 5 2016: Trustpower confirmed that its assets at Snowtown 1 and Snowtown 2 were not damaged as a result of the extreme weather event in South Australia
Dec 22 2017: Trustpower announces sale of GSP energy
March 29 2018: Sale of Australian hydro generation assets has completed

GNE - Genesis energy limited: 19.43%

Jul 1 2014: Genesis energy reached settlement with NZOG
Dec 9 2015: Genesis energy upgraded its developed reserves in Kupe Oil and Gas field
Nov 17 2018: Genesis and tilt renewable announced plan for Waverley wind farms

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