Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


September a bumper quarter for diversified funds

AMP Capital Investors Limited For immediate release: 24 October 2006

September a bumper quarter for diversified funds

Investors in diversified funds have been rewarded with another ‘bumper’ quarter, said Leo Krippner, Head of Investment Strategy for AMP Capital Investors. “Over the quarter to 30 September AMP Capital’s lower risk diversified fund returned 2.0%, its medium risk diversified fund returned 2.6%, and its high risk diversified fund returned 3.2%. For the year to September 30 2006, the low, medium and high equity diversified funds returned 10.4%, 14.6% and 18.7% respectively,” said Mr Krippner.

“Property as a sector performed extremely well once again – particularly global property which returned 11.3% for the quarter and a hefty 36.5% for the year to September 30. Domestic property was also strong with a quarterly return of 7.3% and the annual return to September 30 at 20.5%.

“September quarter New Zealand equity returns were reasonably modest at 1.3%, partly as a result of the sluggish economy – although the annual return was still a healthy 16.5%. “Global equities’ quarterly performance was very good, as some of the June quarter’s economic and financial headwinds reversed. Hedged active global equities as a sector produced a quarterly return of 8.7%, while the unhedged return of global equities was -2.6% due to the rebound in the New Zealand currency. Annual returns for hedged global equities were 13.6%, and returns for unhedged global equities were 20.4%. Mr Krippner issued a warning that the buoyant returns should not be taken for granted going forward.

“There are some very good reasons why, domestically and internationally, returns are likely to be more modest going forward. One reason is simply that recent returns in many asset classes have been well above the long-term averages we expect based on historical analysis.

“More immediately, the New Zealand economy is growing slower than the rest of the world, which will dampen the returns for New Zealand equities. In addition, global growth looks to have peaked, interest rate rises are still on the cards in Japan and Europe, and political tensions remain a concern in Asia and the Middle East. These also point to more modest returns in the medium term,” Mr Krippner said.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news