AUSTRALIA - Australian superannuation funds have posted double-digit returns for the second consecutive year, according to results released by Intech investment consultants.
The results show that the median fund in the Intech Super Growth Universe returned 3% for the December quarter, taking the calendar year return to 14.4%. This return was comfortably above the change of inflation which amounted to just 2.8% for the year ending December 31 2005.
However Intech’s CIO, Ron Liling warned that year-on-year returns can be volatile.
He said: “Average calendar year returns by super funds have ranged from a high of around 33% in 1986 to a low of around -6% in 2002. This phenomenon should send a very clear message to superannuation investors and fund trustees, namely that investment markets will play their part, provided they are given time to do so.”
The top three performers in the government segment for the super growth universe in 2005 were the Q Super Balanced fund which posted 15.5%, the STC Growth fund (15.4%) and the First State Super Diversified fund with returns of 14.8%. By Daniel Flatt
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