Equity funds ended last year with strong results for the 12 months, having started the year from a low base, investment researcher FundSource says.
For the calendar year the average return from New Zealand equity (active) funds was put at 30 per cent, while for NZ equity (Australasian) funds it
was 39 per cent.
FundSource business manager TJ Singh said the Australian and New Zealand markets continued to reflect the improved tone of domestic and international economic data by boosting investor confidence and encouraging investors to return to the market.
"The equity sector started 2009 at a low base, in the midst of the global financial crisis, which serves to make the percentage uplift appear quite extreme by year end," he said.
"Generally speaking, funds which follow a high-risk, high-return strategy and have an exposure to small cap companies have gained the most during this volatile period." Mr Singh said funds with Australian exposure had done particularly well, as economic conditions in Australia were stronger than expected, and China's economic relationship with Australia continued to spur the Australian economy.
For just the month of December, the top performing sector was NZ equity (active) with an average 4.1 per cent return, while NZ equity (passive) returned an average 3.1 per cent for the month.
- NZPA
