Industry funds finally trail master trusts
Retail master trusts have been outperforming industry funds over the past few months, according to the latest analysis by researcher Chant West.
At the same time as releasing new data revealing that the median growth fund returned 3.4 per cent in April, the Chant West research found that for the second consecutive month, the median master trust outperformed the median industry fund.
The research house said this reflected a further downward valuation of the unlisted assets to which master trusts had a much lower exposure than industry funds as well as strong performances in listed markets, where master trusts had higher exposure.
However, it said despite the turnaround in fortunes over March and April, industry funds continued to hold a sizeable advantage over their commercial rivals in terms of historical performance.
“In all likelihood, industry funds will finish the 2008-09 financial year ahead of master trusts, which would make it nine wins out of the past 10 years,” the Chant West analysis said.
“However, the magnitude of the outperformance is not sustainable and we expect it to narrow, with further downward valuations to take place in unlisted markets.”
AUTHOR
Mike Taylor
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