Year to close with double digit returns

The good news looks like continuing for most Australian superannuation fund members, with the latest InTech data pointing to double digit returns through to the end of the 2004 calendar year.

The best performer for the calendar year ending November 30 has been InvescoAustralia with a return of 17.9 per cent, followed by BTFinancial Group with 15.9 per cent and Perpetual Investments with 15.6 per cent.

According to InTech the double digit returns are the first to be recorded in a calendar year since 1998.

The InTech data shows that the median return in the InTech Growth Universe was 2.5 per cent for November, bringing the calendar year to date return to 13.4 per cent.

It said another strong return for December might see 2004 rival the 16.2 per cent return of 1995.

According to InTech senior consultant, Andrew Korbel the main driver for the strong returns has been the performance of the Australian share market with domestic equities being the best performing asset class, which was up 4.6 per cent in November and compares to the 3.3 per cent for international shares in local currency terms.

Korbel said listed property had also been a strong performer over the month, up 3.1 per cent.

“While domestic growth assets in Australian shares and listed property trusts are going from strength to strength, the ongoing weakness in the US dollar is smothering the more modest returns being eked out on international sharemarkets,” Korbel said.