Defying initial expectations, Australian superannuation fund members enjoyed a second consecutive year of double digit returns, according to the latest data release by Intech Investment Consultants.
According to the data, the median fund in the Intech Growth Universe returned 2.4 per cent in December, taking the calendar year-to-date return to 14.6 per cent.
Intech senior consultant, Andrew Korbel said the month of December had provided an exceptionally strong finish to 2005 and had been driven by solid performances by both domestic and international equities which both returned 3.1 per cent and by “a whopping 5.1 per cent from listed property trusts”.
“After a shaky start to the year, we then had a remarkable run whereby the median growth super fund put on 10.5 per cent in five months to September with robust corporate earnings and little sign of inflation outbreaks or a slowdown in China,” Korbel said.
“In October higher oil prices and the economic impact of storm damage by Hurricanes Katrina, Rita and Wilma threatened to derail momentum built up in the middle of 2005, however this was essentially reversed in November with December’s very strong result then capping off another strong year for Australian super funds.”
According to the Intech data the top performer for the calendar year was AMP Balanced Growth with a return of 16.4 per cent, followed by BGI with 16 per cent and Merrill Lynch with 15.9 per cent.
