Master trusts outperform industry funds in January
Strong performance for listed shares and listed property saw master trusts return more than industry funds in January.
According to Chant West, more aggressive fund categories such as master trusts, which have a higher proportion invested in listed shares and listed property, produced the best financial year-to-date and one-year returns due to the strong performance of those asset classes.
Master trusts outperformed industry funds by returning 2.8 per cent versus 2.6 per cent in January, although industry funds continued to hold steadier in the long term.
Over 10 years to the end of January, industry funds outperformed master trusts by 0.9 per cent per annum, returning an annualised 7.2 per cent compared to 6.3 per cent, Chant West said.
The median growth fund was up 2.6 per cent in January, adding to a 10.9 per cent increase over the last seven months from 1 July 2012.
"Barring disasters, fund members can look forward to a fourth consecutive positive financial year return," Chant West director Warren Chant said.
Strong share market performance in January accounted for growth fund performance. Australian shares were up 5 per cent, while international shares gained 5.4 per cent in hedged terms and 4.6 per cent on an unhedged basis.
Listed property was another winner in January, with Australian real estate investment trusts (REITs) advancing 4.4 per cent and global REITs 3.7 per cent.
Chant said that although the GFC had not completely faded away, US shares were back at levels not seen since October 2007, while investors were finally feeling confident enough to start moving out of cash safe havens and back into equities.
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
