The median growth fund gained two per cent in January, according to research by Chant West.
Over the seven months of the financial year to date, growth funds are up approximately 7.2 per cent, Chant West said in a statement.
Retail funds outperformed industry funds in January, returning 2.2 per cent compared with 1.8 per cent.
However, industry funds have achieved greater performance results over the long term – returning 7.2 per cent per annum against 6.1 per cent for retail funds over the 15 years to January 2015, Chant West found.
According to Chant West director Warren Chant, “Most investment commentators are predicting a more modest return for the year ahead after the 8.5 per cent delivered in 2014.”
“Investors themselves are proving more optimistic, however, and as a result the median growth fund is off to a great start in 2015.
“Share markets have continued rising, and we estimate that the median growth fund is up another 2.5 per cent over the month of February to date. That’s on top of January’s 2.0 per cent, so 4.5 per cent over the first month and a half of the year,” he said.
“Listed share markets, which are the main drivers of growth fund performance, had a mixed month,” according to Chant West.
Australian shares advanced 3.2 per cent, but international shares retreated 0.7 per cent in hedged terms.
“However, a further decline in the value of the Australian dollar (from US$0.82 to US$0.78 over the month), meant that unhedged international shares actually delivered a positive return of 3.2 per cent.
“Listed property securities continued their stellar run from last year, with Australian and global REITs up 7.4 per cent and 7.7 per cent, respectively,” said Chant West.
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