No autumn ‘fall’ for investors
Financialmarkets provided investors with some respite in March, with the median fund manager in theInTechgrowth survey returning 1.64 per cent over the month.
However, returns for the year to date remain deeply negative, with the median manager returning -6.07 per cent for the financial year to date and -3.38 per cent for the calendar year to date.
These figures are ominous for superannuation fund members given that the majority of superannuant assets are held in fund manager growth options and are likely to increase the level of criticism of super as a retirement savings vehicle.
According to the survey, super funds will be challenged “not only to explain the year-on-year negative returns to their members, but to also maintain faith in their superannuation fund’s investment strategy”.
All managers made it into positive territory for the month with value managersMaple Brown AbbottandTyndallthe best performers with returns of 2.11 per cent and 2.08 per cent respectively.
The worst performing managers wereColonial First StateandMerrill Lynchwith respective returns of 0.93 per cent and 1.23 per cent.
InTech attributed the year’s poor performance to the “proverbial pummelling” taken by international shares, which are down 22.8 per cent for the financial year to March 31.
Recommended for you
As the government announces a public inquiry into the collapse of Dixon Advisory, risk adviser Richard Silberman has detailed the three areas that typically lead to an AFSL's collapse.
With a growing number of advisers now running their own business, they need to pivot their career identity to being a business owner rather than just as a financial adviser if they want to futureproof their business.
Zenith Investment Partners has launched a range of new managed account portfolios over the past quarter, including on Insignia Financial’s Expand platform.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.