Master trusts narrow gap on industry funds

Master trusts are playing catch-up with industry funds, according to a survey conducted by key consultancy Chant West Financial Services.

According to the Chant West Multi-Manager Survey, master trusts have been shaken by the out-performance of industry funds over the past six years — something that has prompted them to look at the way in which they are doing business, including their strategic asset allocation.

Chant West said that by changing their strategic asset allocations, the master trusts had narrowed the gap with industry funds, with differences in performance over the past three years being minor.

It said the most marked change to the asset allocation of master trusts had been their larger exposure to alternative assets.

Looking into the future, the survey suggests that industry funds may need to make some adjustments to their strategic asset allocations to maintain their competitive performance advantage.