Double digit returns in prospect
DESPITE some tough times in March and April, most Australian superannuation funds seem likely to have ended 2004-05 having generated double-digit returns for members.
That is the bottom line assessment of InTech Investment Consultants, which found that after a tough month in April, when the median Australian shares manager returned -3.3 per cent, a stronger May delivered returns of 3.2 per cent.
“Many may have been anticipating a serious market correction for the Australian sharemarket after tough months in March and April. However, May proved to be a good month,” InTech’s analysis said.
It said the Australian sharemarket experience had been very similar to that of the US market over the past three months.
However, the bottom line of the InTech data was that Australian managers had remained well ahead of the S&P/ASX 200 Accumulation Index for the financial year to date, with the median manager in the InTech survey outperforming by 1.9 per cent.
It said, given that the median manager had outperformed by only 0.2 per cent in both the 2003 and 2004 financial years, 2004-05 had been a far more supportive year for active management in Australian shares.
“Excess returns for the best performers have been large for the financial year to date,” InTech said, citing MIR (9.8 per cent), Platypus (8.9 per cent) and ABN AMRO (7.2 per cent).
AUTHOR
Mike Taylor
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