Shares drive retail master trusts ahead

Strong domestic and international equity market returns saw retail master trusts outperform their industry super fund counterparts in January, according to the latest data released by Chant West.

The data showed that retail master trusts returned 2.9 per cent in January, outperforming industry funds which returned 2.3 per cent.

As well, the data showed that the outperformance of listed shares and property had seen the retail master trusts outperform the industry super funds over the past three years - returning 8.4 per cent compared to 7.2 per cent for industry funds.

Chant West principal Warren Chant said this was a result of listed markets recovering from the lows experienced during the global financial crisis (GFC).

He pointed out, however, that industry super funds held the advantage over the longer term, outperforming retail master trusts by 1.3 per cent a year over a ten year period.

Chant West this week reported that the median growth superannuation fund grew by 2.5 per cent in January - enough to more than recoup the entire 1.9 per cent loss experienced over the 2011 calendar year.

However, Chant warned that notwithstanding the 29 per cent growth recorded since listed markets bottomed in late February 2009, they still needed another 7 per cent before they returned to the highs recorded before the GFC.