This brought the total return for the first four months of the current financial year to 6.8 per cent and the 12-month return to 31 October 2013 to 16.9 per cent, according to research by Chant West and SuperRatings.
Share markets performed well in October, according to Chant West, with Australian shares returning 3.9 per cent and international shares increasing 3.9 per cent in hedged terms.
Due to the rise of the Australian dollar, however, the return in unhedged terms was lower at 2.6 per cent.
Listed property returns also rose with Australian REITs increasing 2.6 per cent and global REITs increasing 3.5 per cent.
According to SuperRatings, returns also remained positive across all other asset classes in October, with diversified fixed interest up 0.4 per cent and cash options up 0.2 per cent.
Chant West director Warren Chant said the significant results generated by the median growth fund are related to the strong performance in the past 18 months and the GFC period gradually working its way out of the five-year return.
He said that the eight per cent annual return was well above the return objective of 6.5 per cent.
“Growth funds are up 60 per cent since the GFC low point at the end of February 2009 and now stand 18.5 per cent above their pre-GFC high achieved in October 2007,” said Mr Chant.
He said while investors had been concerned during the 16-day partial US government shutdown, the share markets rebounded strongly after a last minute agreement was reached to raise the US debt ceiling.
“Additionally, the Federal Reserve announced there will be no tapering of its asset purchase program until there is further evidence the recent economic progress seen is sustainable,” he said.
Mr Chant believes, however, that recovery in the eurozone may be slowing based on economic data released in October.
The European Central Bank cut interest rates to a record low of 0.25 per cent.
“Domestically, the RBA kept rates on hold at 2.5 per cent at its November meeting,” said Mr Chant.
“While most recent economic data released has been upbeat, it’s too soon to know whether this improvement is sustainable.”
SuperRating’s estimates indicate that the calendar year return currently sits at 14.1 per cent at 19 November 2013.
SuperRatings also stated that this year is likely to be the highest calendar year return since the GFC, if markets remain flat for the rest of the year.
