The funds arena experienced a significant improvement last month after a series of negative results following the September 11 terrorist attacks, a report by asset consulting groupInTech Financial Serviceshas shown.
A median return of 3.2 per cent was recorded by pooled funds that took part in the Intech Growth Funds Survey in October, a huge turn around from the negative 3 per cent recorded by the funds in September. The figure is also the highest monthly performance return reached since 31 December 1997.
For most funds, the performance of the Australian share market helped to improve their monthly return, with the S&P/ASX 200 gaining 6.7 per cent over the period. This helped to partly offset the negative September quarter return for the local market of negative 11.8 per cent.
According to the InTech survey, the lowering of official interest rates aided the improved returns of both domestic and international funds over the month of October.
The best performing fund for the month was County, reaching 4.1 per cent with the help of a high weighting to Australian listed property.
Following closely behind was ING and Colonial First State, both recording 3.9 per cent. ING was assisted by an overweight allocation to listed property and Australian shares, while Colonial experienced a good run in the local and global equity markets.
At the opposite end, National Asset Management sat at the bottom of the 36 fund list with a 1.2 per cent performance figure for October. Citibank Balanced and Citibank Growth were the next worst performing funds, recording 2.2 per cent and 2.5 per cent respectively, due in part to their low exposure to Australian and international shares.
In other news, InTech Financial Services will have a new managing director as of next Monday, when former Corrs Chamber Westgarth chief executive Meredith Hellicar joins the group. Wayne Peters, currently a non-executive director at InTech, will become Chairman of the Board.
