Positive signs for Australian sharemarket: Morningstar

The Australian sharemarket rose 4.2 per cent in July following a 7 per cent decline for the S&P/ASX300 Accumulation Index over 2011-12, according to Morningstar's institutional sector survey.

For the year to 31 July 2012, the Australian sharemarket returned 0.8 per cent, 4.5 per cent over three years and -3 per cent over five years, it said.

Telecommunications performed best for the month, returning 8.3 per cent, while financials returned 6.9 per cent and consumer staples 6.8 per cent. Materials performed badly returning -0.7 per cent, as did resources at -0.6 per cent and consumer discretionary at 2.3 per cent.

The median Australian share fund manager returned 3.7 per cent in July, 0.1 per cent over the year, and 4.5 per cent over the last three years to 31 July 2012.

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Investors Mutual had the best performing Australian share strategy returning 11.2 per cent, followed by Dalton Nicol Reid and Lazard.

International sharemarkets were up in aggregate, but down 1.6 per cent in Australian dollar terms due to a 2.6 per cent rise in the Australian dollar compared to the US.

Consumer staples performed well internationally, posting returns of 3.3 per cent, energy returned 3.2 per cent and healthcare 2.7 per cent, while utilities and materials performed poorly.

Johnston's return of 0.4 per cent was best among international share strategies, compared to the median manager return of -1.4 per cent over the month. Magellan returned -0.2 per cent and Capital International -0.4 per cent.

Australian property returned 5.6 per cent over the month, with Macquarie Bank, Challenger and SG Hiscock the best performers.

The UBS Composite Index returned 0.4 per cent for the month and 11 per cent over the year, with Goldman Sachs, Macquarie and Altius performing best among Australian fixed income strategies, according to Morningstar.