Master trusts have outperformed industry funds within the growth fund category for the first time since August 2008, independent superannuation consultancy Chant West revealed yesterday.
According to the group's superannuation fund performance report for March 2009, while master trusts gained minimal headway industry funds continued to hold a sizeable advantage over their commercial rivals in terms of historical performance.
Master trusts outperformed industry funds by 0.7 per cent over the month but for the year to date were lagging 6.9 per cent, Chant West director Warren Chant said.
"Historically, industry funds have outperformed master trusts by about 1.5 to 2 per cent, however that gap has widened to about 6 per cent since the global financial crisis," he said.
Reasons master trusts had performed better during March included positive returns for listed equity markets and unlisted markets generally sitting in negative territory, Chant said.
"Because industry funds have more unlisted assets and master trusts have more listed assets, master trusts generally perform better under these circumstances," he said.
"If the listed equity markets continue to perform better than unlisted markets then master trusts could continue to outperform, but it is way too early to tell and very uncertain whether listed markets have reached their bottom yet.
"Despite some good news it is not a sure thing that we're seeing the beginning of a move back to normal times, so caution must be exercised."
According to Chant West, growth funds are those with a 61 to 80 per cent allocation to growth assets.
