Retail master trusts continue to perform

Warren Chant

Retail master trusts have continued to outperform industry superannuation funds, according to the latest data released by research house Chant West.

The data, released on Monday, revealed that stronger share markets ensured that master trusts marginally outperformed industry funds in October — although the industry funds were better performers over the longer term.

The data revealed that in the year to the end of October median growth retail master trusts had returned 7.2 per cent compared to 7 per cent for industry funds.

Chant West principal Warren Chant said that the performance had been driven by the continuing rally in share markets, which saw the median growth superannuation fund returns rise by 1.4 per cent during October after gaining 2.4 per cent in September.

He said that international shares and property had recorded a particularly good month.

Chant said that over the 2010 calendar year to date, the data had revealed five positive months and five negative months — and the outlook remained uncertain.

“Markets are still highly volatile and we are getting used to seeing movements of 1 per cent or more up or down in a day,” he said.

He said Governments were still pumping money into the system, and added that until artificial stimulus had washed through the system it would be difficult to tell whether the global economy was back on track.