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Strategic divide widens between industry funds and master trusts
Industry superannuation funds have again outperformed their retail rivals in the latest Chant West research for February, largely due to their lower exposure to listed assets.
However, the research house has pointed out that valuations of unlisted assets have started to fall, albeit not yet at the rate experienced by listed securities.
The Chant West research confirmed that February had been another poor month for listed markets with Australian shares losing 4.6 per cent over the month, while international shares lost 9.1 per cent (hedged) and 10.8 per cent (unhedged).
It said as a result, super funds with any significant exposure to shares reported negative returns.
The analysis said the Chant West median for growth funds (those with a 61 per cent to 80 per cent allocation to growth assets and the default option for most members) returned negative 4 per cent for the month based on interim figures, making it seven negative months out of the past eight.
It said this contributed to a fall of 5.7 per cent for the quarter and 19.2 per cent for the financial year to date.
The Chant West research found industry funds had been quite significantly increasing their strategic allocation to unlisted assets over the past year, while their master trust counterparts had made little change in that direction.
"No doubt those master trusts will be hoping for a sustained recovery in world share markets to vindicate their stance," the analysis said.
AUTHOR
Mike Taylor
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