AUSTRALIA - Growth funds returned an average of 5.6% in September, marking the best start to a financial year in over a decade, according to local consultancy, Intech.
The 5.6% return was led by the Australian sharemarket and compares to the modest starts of 2% and 3% for the corresponding quarters for the last two financial years and in sharp contrast to the -6% for each of the September 2001 and 2002 quarters.
Since sharemarkets worldwide rebounded in early 2003, growth-oriented superannuation funds have enjoyed a return to sustained double-digit annualised returns.
Intech also found the Australian sharemarket posted a return of 10% for the third quarter, again benefiting from its traditional resources exposure.
The 32% return for the past 12 months is the best annual return since early 2004.
Other international returns have been mixed, with Japan up 22% in Q3 (in local currency terms), while the US was up 4% for the quarter as it came to terms with rising oil prices and Hurricane Katrina.
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