Median funds post good October gains

The median growth fund (61-80 per cent growth assets) has posted a 1.2 per cent gain in October, despite investment market apprehensions, according to Chant West data.

Listed share and property markets, which are the main propellers of the upswing reported positive returns in October, which Australian shares returning 4.3 per cent.

The rise of the Australian dollar meant international shares rose just 0.1 per cent in unhedged terms but 1 per cent in hedged terms.

Listed property had a solid month, with Australian and international REITs rising 6.5 per cent and 7.9 per cent respectively.

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The median growth fund posted 8.6 per cent over one year, 11.5 per cent over three years, 6.7 per cent over 10 years and 6.6 per cent over 15 years.

"While share markets were positive in October, we've seen increased nervousness and volatility over the past two months," Chant West director Warren Chant said.

"Now that the US has ended its asset purchasing programme, debate is already focusing on the timing of the first interest rate hike. Meanwhile, the US economy continues to show signs of improvement with a positive earnings season."

While retail and industry funds are neck and neck in October, returning 1.3 and 1.2 per cent respectively, industry funds have taken a comfortable lead over the longer term.

Over 15 years to the end of October, industry funds returned an annualised 7.1 per cent against 6.1 per cent from retail funds.

Over five years, industry funds were at 8.6 per cent while retail funds were at 8.3 per cent.