Industry funds finish ahead on allocations
Industry funds’ generally lower allocations to unhedged investments and their higher exposure to unlisted assets will see them finish the financial year slightly ahead of retail master trusts, according to the latest data from Chant West.
Chant West principal Warren Chant is forecasting that the median growth fund will post a return of about 9 per cent for the year to 30 June.
He said some funds will have performed better than others, and that he was expecting an investment return range of between 7 per cent and 12.5 per cent.
However, Chant pointed to the fact that even with two years of positive returns, growth funds had still not repaired the damage imposed by the global financial crisis (GFC), with a further 6 per cent in returns needed to return to the levels achieved in late October, 2007.
He said that notwithstanding continuing market volatility, he expected growth funds to return to their pre-GFC levels in the new financial year.
AUTHOR
Mike Taylor
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