Share funds have a bumper 2009

Over the 12 months to December 31, NZ Equity (Active) and NZ Equity (Australasian) have delivered average returns of 30.0% and 39.0% respectively.
The Australian and New Zealand markets have continued to reflect the improved tone of domestic and international economic data by boosting investor confidence and encouraging investors to return to the market. 

"Last year has seen quite a lot of volatility in markets and you would expect variations in returns across fund managers that adopt different investment strategies," FundSource business manager TJ Singh says.

The equity sector started last year 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. 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.

Over the 12 months, the top performing sector was the International Equity (Australian). "People are willing to accept the prospect of fast economic recovery. Funds with Australian exposure have done particularly well, as economic conditions in Australia have been stronger than expected and China's economic relationship with Australia has continued to spur Australia's economy.