Investment research company FundSource says its half-year analysis shows equity fund investors have continued their run of positive returns.
New Zealand active equity funds grew by just under 6% for the half & 12% for the June year.
International equity funds grew by just under 6% for the half & 14.5% for the year.
FundSource’s summary of the main investment sector performances:
NZ active equity unit trusts:
New Zealand investors have more than $850 million in New Zealand equity funds. Average performances for active funds in June were up 5.93%, equity fund managers returned on average 14.55% for the year versus the NZX50 Gross (33%) return of 14.28%.
Top performer was the Fisher Funds NZ Growth fund with 21.39% for the year (8.38% for 6 months), while AXA Australasian Selected Equities rose 15.77% for the year after a 4.79% return in the half year.
“Short-term performances in the NZ equity sector continue to reflect a persistently buoyant New Zealand
economy. What we find of considerable note, however, is that over the medium & longer terms, NZ equity
funds continue to add value for their investors.
“Over a 5-year period, for example, active NZ equity funds have returned 7.28% (post tax & fees) relative to the NZX50 Gross Index (33%) returning 6.18%,” FundSource general manager Tim Anderson said.
No NZ equity funds reported returns under 10% for the year.
International equity unit trusts:
New Zealand investors have $2.4 billion invested in international equity funds. International equity funds have slightly underperformed the index this year, as measured by the MSCI World Free Gross (33%), with average returns of 4.77% versus 5.11%. While the index gained 10% in the June year, international equity funds in the same period gained over 12% (after tax & fees) on average.
The BNZ International Equity Trust (FundSource’s 2003 international equity fund of the year ) led with 5.56% for the half, 18% for the year. Other solid performers for the year included the ING International Share Fund (16.08%) and the ANZ World Equity Trust (16.05%).
“Sustained positive performances in international equity funds continue to be encouraging for investors.
Certainly, the harsh reality of international equity investing is still fresh in many minds, but with a historic bear market now behind us, investors are looking forward to strong offshore economic conditions, realising further positive international equity returns,” Mr Anderson said.
This is the largest managed fund sector, with more than $7 billion of New Zealanders’ money invested. Diversified funds also enjoyed strong growth in the June year.
Primarily on the back of positive equity market performance, balanced funds returned 2.75% in the half, 7.32% for the year. As to be expected with a higher allocation to equities, growth-orientated diversified
funds performed better with a 3.84% over the half & 9.69% for the year.