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.
