Master trusts outperform in 2009

Superannuation funds may have recovered strongly through the back-half of 2009, but there were wide disparities in how well they recovered, according to actuarial consultancy Chant West.

In an analysis of fund performance released this week, Chant West principal Warren Chant pointed out that while the median superannuation growth fund had posted a healthy 15.1 per cent return for the 2009 calendar year, this was by no means a uniform result.

He said one feature of 2009 had been the wide disparity of performance of individual funds, with returns within the growth sector ranging from 2.9 per cent to as high as 24.2 per cent.

“To a large extent, that reflects the way funds reacted towards the end of the 16 months of market decline from the end of October 2007 to the end of February 2009,” Chant said.

“Those that took the opportunity to reallocate money to the worst hit sectors — mainly shares but also corporate debt and property — were effectively buying securities at ‘bargain’ prices, so they reaped the rewards when markets recovered, while those that were more cautious missed out,” he said.

The Chant West data revealed that, consistent with a string of results through 2009, retail master trusts had outperformed industry funds for the year.

It said with their higher exposure to listed assets, retail master trusts had been the major beneficiaries of the global share market rally and that in the 10 months from the end of February to the end of December, the median master trust rose by 26.9 per cent against 18.7 per cent for the median industry fund.