Retail funds boosted by firm market

The uptick in the performance of listed investments during July saw retail funds outperform industry funds, according to the latest Chant West analysis.

While pointing out that industry funds had retained an edge over the long haul, Chant West said retail funds returned 2.6 per cent during the month versus 2.3 per cent.

However, like other superannuation research and ratings houses, Chant West has pointed to the continuing volatility which is likely to see the gains recorded during July, offset by the more challenging conditions being experienced this month.

According to Chant West principal, Warren Chant, the median growth fund (61 to 80 per cent growth assets) gained 2.3 per cent in July, predominantly on the back of a rebound in listed share markets.

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He noted that Australian shares were up 4.3 per cent and international shares advanced 2.4 per cent in hedged terms, with currency again having a major impact with the Australian dollar declining further, lifting the return from unhedged international shares.

Chant said listed property also had a strong month, with Australian and global REITs up 5.7 per cent and 4.6 per cent, respectively.

The Chant West analysis issued a note of caution for superannuation fund members, stating that the general consensus among asset managers is that "we're entering a low growth period".

"They report that many asset sectors are now close to being fully valued and it's becoming harder to identify sources of future growth. So members should expect returns to be much lower, in the medium-term at least, than what they've seen over the past three years," the analysis said.