POWERED BY MOMENTUM MEDIA
Master trusts outperform in 2009
Superannuation funds may have recovered strongly through the back-half of 2009, but there were wide disparities in how well they recovered, according to actuarial consultancy Chant West.
In an analysis of fund performance released this week, Chant West principal Warren Chant pointed out that while the median superannuation growth fund had posted a healthy 15.1 per cent return for the 2009 calendar year, this was by no means a uniform result.
He said one feature of 2009 had been the wide disparity of performance of individual funds, with returns within the growth sector ranging from 2.9 per cent to as high as 24.2 per cent.
“To a large extent, that reflects the way funds reacted towards the end of the 16 months of market decline from the end of October 2007 to the end of February 2009,” Chant said.
“Those that took the opportunity to reallocate money to the worst hit sectors — mainly shares but also corporate debt and property — were effectively buying securities at ‘bargain’ prices, so they reaped the rewards when markets recovered, while those that were more cautious missed out,” he said.
The Chant West data revealed that, consistent with a string of results through 2009, retail master trusts had outperformed industry funds for the year.
It said with their higher exposure to listed assets, retail master trusts had been the major beneficiaries of the global share market rally and that in the 10 months from the end of February to the end of December, the median master trust rose by 26.9 per cent against 18.7 per cent for the median industry fund.
AUTHOR
Mike Taylor
Recommended for you
A major super fund has defended its use of private markets in a submission to ASIC, asserting that appropriate governance and information-sharing practices are present in both public and private markets.
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
36.96 3 y p.a(%)
3
GAM LSA Private Shares AU I
34.22 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
VanEck Video Gaming and eSports ETF (AU)
28.89 3 y p.a(%)
