Stronger markets see retail funds outperform industry funds

cent commonwealth bank industry funds global financial crisis

21 September 2012
| By Staff |
image
image
expand image

Stronger share markets have seen Australian superannuation fund returns closing in on the highs achieved prior to the global financial crisis.

Both Chant West and SuperRatings have pointed to the improving returns for superannuation funds with the median growth fund returning 1.7 per cent during August, bringing the financial year-to-date return to 2.9 per cent, while median balanced return was 1.6 per cent for August and 2.7 per cent for the financial year-to-date.

The strength of the share markets also meant that retail master trusts - with their higher allocation to listed shares and listed property - outperformed the industry funds, returning 1.9 per cent compared to 1.6 per cent.

Commenting on the returns data, Chant West principal Warren Chant said shares had been the main drivers of growth fund performance.

"To the end of August the median fund has returned a healthy 34.5 per cent since share markets bottomed in late February 2009, and it now only needs another 2.5 per cent to return to the pre-GFC level reached at the end of October 2007," he said.

SuperRatings founder Jeff Bresnahan said that despite the GFC and the resultant market turmoil over the past five years, Australians had still seen their super fund return around 77 per cent in relative terms over the past decade.

SuperRatings listed the top five balanced investment option funds over the past five years as being:

  • LGsuper Accumulation - Balanced (3 per cent)
  • Commonwealth Bank Group Super - Mix 70 (2.8 per cent)
  • REST - Core Strategy (2.4 per cent)
  • Local Super growth option (1.5 per cent), and
  • CareSuper Balanced (1.5 per cent).
Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 day 11 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

5 days 17 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 3 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 5 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

4 days 15 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

3 days 18 hours ago