Stronger markets see retail funds outperform industry funds

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

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 2 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 4 days ago