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(February-2004) Master trusts lag not-for-profits
Industry not-for-profit funds have outperformed the major master trusts over the past 12 months, according to a survey conducted by Sydney-based ratings analyst, Jeff Bresnahan.
Just a week after taking funds to task for not adequately disclosing fees, Bresnahan’s company, SuperRatings released a survey covering the major investment offerings of 40 of Australia’s largest multi-employer superannuation funds and claiming the master trusts are still lagging.
Bresnahan says that over all periods measured, the top ranked master trusts have failed to break into the top five not-for-profit results.
According to the SuperRatings data, REST Core Strategy was the best performing not-for-profit fund on a rolling three year basis to December 31, 2003, while Host Plus Balanced represented the best-performing not for profit fund on a rolling five year basis.
“Despite strong equity markets between March and December 2003, the master trusts have failed to reel in the not-for-profit funds in terms of earnings being credited to member accounts,” he says.
Bresnahan says that according to his survey median, members in not-for-profit funds have earned an additional 3.9 per cent a year on their money, net of investment fees and taxation, over the last three years which equates to additional investment earnings of 12.2 per cent over the period.
By comparison, he says members in not-for-profit funds earned an additional 2.4 per cent per annum on their money, net of investment fees and taxation, over the last five years, equating to additional investment earnings of 12.6 per cent.
By comparison, Host Plus Balanced represented the best-performing not for profit fund on a rolling five year basis, while AON Master Trust Balanced was the best performing commercial master trust
AUTHOR
Mike Taylor
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