Rainmaker Information has just released its latest managedfunds investment report for the three year period to 31 March2019.
International equities was the top performing asset sector,achieving median returns after fees of more than 13% p.a. Large capdiversified global equities slightly edged emerging marketsinternational equities by a small margin however.
The Australian equities asset sector was close behind withmedian returns for the sector of 11.2% p.a. for large capAustralian equities and 9.9% p.a. for small cap managed funds.
In last place was the international fixed interest bond sectorwith median returns of 3.4% pa. In second last place was theAustralian fixed interest sector with median returns of 4.1%pa.
The sector median was outperformed by the relevant index in eachof the below strategies except for international fixed income(Bloomberg Barclays Global Agg Hedged with 3.2%) and combinedproperty (the S&P ASX200 A-REIT Index matched the sectormedian with 9.9%).
Rainmaker's head of investment research, John Dyall, said"the last three years has been a fascinating period forequities markets, both internationally and in Australia. Theheadline numbers can hide a lot of important information frominvestors."
"Where you are invested and your managed fund'scurrency position has had a large effect on your returns. Currencyhas added a lot to the international equities returns if you areunhedged, while Australian resource stocks have eclipsed returnsfrom industrials," explained Dyall.
As a result, Dyall cautioned investors to look behind theheadline investmentreturn figures because consistency of investment returns isjust as important. Plus investors should be careful to invest intomanaged funds with clear investment objectives that they arecommitted to.
"While headline returns are a key measurement of successfor managed funds, consistency of returns and the ability of a fundto match its performance to its stated investment objective arealso crucial factors when comparing funds."
1 Growth funds have more than 75% of their assets ingrowth assets such as equities and property, balanced funds havebetween 55% and 75% and capital stable funds have less than55%.
FUA in managed accounts platforms has continued its rapid growth, increasing by almost 50% p.a. in the last three years.
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