Superannuation funds posted their strongest monthly gain in a decade in April, sparked by surging global equity markets.
Data from research firm Chant West found that the average balanced fund increased 3.4% in April, following a 2.7% increase in March.
While the median fund has declined by 14.8% since July last year, it appears predictions that losses in the 2008-09 financial year could be as high as 20% will prove to be unfounded.
Indeed, if the Australian sharemarket rally continues – and the All Ordinaries is up around 2% so far this month – then losses for the financial year could be limited to single digits.
Chant West’s research also showed that retail master trusts easily outperformed industry super funds in April. The average master trust rose 4.3% in the month, compared to a 2.9% rise for industry funds.
However, Chant West principal Warren Chant said he expected industry funds will finish the financial year ahead of retail funds because industry funds have invested more heavily in infrastructure, private equity and property and have been better shielded from the sharemarket rout.
Industry funds (which typically have a lower fee structure than retail funds) have outperformed retail master trusts in eight of the past nine financial years.
|
|
Industry funds |
Master trusts |
|
|
1 month |
2.9 |
4.3 |
|
|
3 months |
1.9 |
2.2 |
|
|
Fin year to date |
-12.4 |
-16.2 |
|
|
1 year |
-14.6 |
-19.6 |
|
|
3 years (p/a) |
-1.5 |
-4.8 |
|
|
5 years (p/a) |
5.5 |
3.1 |
|
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
