Average balanced fund earns 11 per cent return

Mercer Consulting said of 29 balanced funds in its annual survey, none earned a return near the 26 per cent gain for the ASX 300 accumulation index this year. Mercer said investors in balanced funds should not expect diversified multi-sector funds to perform exactly in line with the Australian market because they invest in other asset classes. Mercer said the real return after inflation of the median fund this year was 10.8 per cent compared with a 30-year average of 5.7 per cent. Mercer said that on average, the funds surveyed had 37 per cent of their money in Australian shares, about 26 per cent in overseas shares and 15 per cent in domestic fixed income.