Industry funds outgun balanced funds
Major industry-based superannuation funds outperformed fund manager balanced funds in 1999, according to Industry Fund Services (IFS).
Major industry-based superannuation funds outperformed fund manager balanced funds in 1999, according to Industry Fund Services (IFS).
IFS also claims industry funds continued “spectacular growth” in funds under man-agement during the year, as people moved out of corporate funds and into industry funds.
IFS says major funds showed early returns in the 11-15 per cent range after tax and fees for the year representing a comfortable margin over the average balanced fund manager return, which independent surveys put in the 9 -10 per cent range.
"All of these (industry) funds have achieved asset growth of 20 per cent, while asset growth for HESTA (Health Employees Superannuation Trust Australia) and HOST-PLUS (the industry superannuation fund for hospitality and tourism) has exceeded 40 per cent for the year," says IFS executive chairman Garry Weavens.
Weavens says strong investment performance by the industry superannuation funds arose from a healthy exposure to alternative asset classes such as infrastructure, less reliance on traditional fixed interest assets and on listed property trusts.
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