Managed funds continuing good returns on growing equity markets

FundSource general manger Tim Anderson said investors were seeing "significant positive performances in their equity funds, following what have been recent record increases in performance".

"International equity funds saw solid growth of over 12% in the year to May 31, 2004 while leading the way again were New Zealand equity funds, with active funds increasing 16% and their passive counterparts growing a creditable 18%," Anderson said in a statement.

Despite a flat May, New Zealand equity markets continued to be extremely strong, Anderson said, " reflecting a persistently buoyant New Zealand economy".

"With an economy continuing to be stronger than many commentators expected, it has translated into higher company profits and ultimately, higher company values," Anderson said.

Active New Zealand equity funds on average returned 16% for the year.

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