POWERED BY MOMENTUM MEDIA
A super start for the new year
The median growth fund is over 14 per cent better off than before the global financial crisis, even though Australian shares are still 4.6 per cent behind their October 2007 levels and international shares are only slightly in front, according to Chant West.
Director Warren Chant said it was an important reminder that the typical growth fund does not just depend on shares for performance.
However, sharemarket performance supported good results in July following a 5.3 per cent surge in Australian shares, and a 4.7 per cent increase on international shares hedged and 7.4 per cent unhedged.
High allocations to listed shares and property saw master trusts outperform industry funds for the month of July and also for the year.
Master trusts returned 3.2 per cent in July while industry funds returned 2.9 per cent, averaging out at 3.1 per cent across the industry. Trusts also returned 18.8 per cent versus 17.8 per cent for industry funds on a one-year basis.
Industry funds continued to outperform over the longer term, however, returning an annualised 7.8 per cent to master trusts and 6.5 per cent over 10 years.
Chant said industry funds did better when listed markets were flat or in decline, while the opposite was true of master trusts - a pattern that would continue as long as differences in asset allocations were so pronounced.
Chant said share market performance was due to positive economic data coming from the US, with news the Federal Reserve’s bond purchasing program would continue. Additionally, Europe’s apparent emergence from recession, the realisation of growth expectations in China and further interest rate cuts by the Reserve Bank in Australia all impacted on super fund performance.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Generation Life has backed new voluntary best practice principles aimed at improving retirement income solutions for Australians, despite opposition from parts of the financial services sector.
Australia’s pension assets pool is set to surpass other key economies, new research from the Super Members Council (SMC) has shown.
The Federal Court has ordered AustralianSuper to pay $27 million for failures to address multiple member accounts.
The country’s fourth-largest fund is targeting the “missing middle” of members with a new digital advice service in partnership with Ignition Advice.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.78 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
30.80 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
28.31 3 y p.a(%)
