Investors weather another quarter of negative results

Superannuation funds had another horror run in the September quarter following the turmoil on world equity markets.

Mercer Investment Consulting said the average return of 11 funds surveyed in the quarter was minus 4.8 per cent - before management fees and tax. The median return was minus 4.9 per cent.

Worst performer in the quarter was Colonial First State Investment Management with minus 6.2 per cent, followed by Alliance Capital Management at minus 6.1 per cent.

The best performance was ING New Zealand with minus 3.6 per cent, possibly due to its emphasis on property and a 31.8 per cent weighting in overseas shares against the average of 36.8 per cent.

The median return for the September year was minus 5.1 per cent, with AMP Henderson Global Investors worst with minus 7.7 per cent and Tower Asset Management best at minus 0.5 per cent.

Over three years, the median return was 0.6 per cent with Tower having the best performance with 3.3 per cent per annum and AMP the worst at minus 0.9 per cent.

Over five years, the median return was 4.1 per cent annually, with best being 5.7 per cent from Tower and worst 2.6 per cent from WestpacTrust Investment Management.

- NZPA