Master trusts outperform industry funds
Retail master trusts outperformed industry funds again in September on the back of surging equity markets, according to the latest data released by Chant West.
However, it was the members of superannuation funds that hedged strongly against the rising Australian dollar who emerged best during the month.
The Chant West analysis, released today, has revealed that the median growth superannuation fund returned a healthy 2.4 per cent resulting in a 4.3 per cent gain for the first quarter of the new financial year.
Chant West principal Warren Chant said that surging share markets in Australia and overseas had been the primary drivers for the rise and, while most funds now included a variety of alternative assets in the investment mix, traditional listed shares accounted for most of the performance.
“After a negative August, September was a bumper month for Australian and international shares and this led to strong returns for growth funds,” he said. “However, currency was also a very important factor and the funds that did best were those that hedged more against the rising Australian dollar.”
Chant said that retail master trusts with their higher weightings to listed shares had outperformed industry funds in September, albeit that industry funds continued to hold the advantage over the longer term.
AUTHOR
Mike Taylor
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
