Stellar returns from growth assets translated into positive annual performances for most multi-sector funds last year, according to Morningstar research.
Market gains were spread evenly across sectors in 2009 with the best returns coming from materials, consumer discretionary and financial companies, the report said.
“It was neck and neck between value and growth managers all year. The banks did very well initially and then as the global growth outlook improved and commodity prices rebounded, resource stocks, particularly small beaten up ones, outperformed,” Morningstar consultant Sallyanne Cook said.
“Resources outperformed in the final quarter of 2009, which gave growth-orientated managers the edge for 2009.”
According to Morningstar’s performance tables, Hyperion Australian Growth Companies dominated the universe of large-cap Australian share funds, delivering a 59.2 per cent return for the year to 31 December 2009.
PM Capital Australian Opportunities Fund rebounded, moving from the bottom of the league table in 2008 to third position in 2009. The fund posted a 55.24 per cent return.
One of last year’s best performers, EQT SGH Absolute Return, fell to the bottom of the table, down 5.44 per cent for the year.
Active small cap fund managers were the star performers, Cook said.
Active managers outperformed the S&P/ASX Small Ordinaries Index and returned 59 per cent on average for the year.
According to the report, investor confidence has not fully recovered in the listed property sector. Although Australian real estate investment trusts (AREITs) rebounded with the broader share market for most of 2009 they retreated in the final quarter, falling 4.99 per cent.
Nonetheless, the S&P/ASX 300 AREIT Accumulation Index finished in positive territory, returning 9.56 per cent after dropping close to 40 per cent in 2008.
