AUSTRALIA - Australia's median growth superannuation fund returned 2.2% in July on the back strong equity performance over the month.
The Australian equity market was up 4.5% in July, while international shares gained 5.8% in hedged terms, but only 0.7% in un-hedged terms.
Research and consultancy firm Chant West said this was due to the appreciation of the Australian dollar against the US dollar (up from US$0.85 to US$0.90) and other major currencies.
Chant West director Warren Chant said: "The July result was on the back of strong share markets here and overseas, which are the main drivers of growth fund performance. In the US, the reporting season was generally positive, with several companies delivering better than expected results. Additionally, the results of stress tests performed on European banks provided some further relief."
"While growth funds have rallied 22% since end-February 2009, they still need a further 13% return from here to get back to the pre-GFC [global financial crisis] levels of late October 2007.
"This may take some time, as economic data coming out of the US indicates a subdued outlook for the world's largest economy despite the positive reporting season."
The company's monthly super performance survey also found master trusts outperformed industry funds for the 13th time in the past 17 months on the back of strong listed markets.
However, over the longer term industry funds continue to hold the advantage, it added. Over 10 years to the end of July 2010, industry funds outperformed master trusts by 1.3% per annum, returning an annualised 5.6% against 4.3%.
The Howden Group Pension Plan has completed a full pensioner buy-in with Legal & General (L&G), insuring benefits for around 2,000 members.
Professional Pensions is looking to update its list of pensions master trusts in the UK ahead of authorisation. Can you help?
Concern about the potential impact on employer covenants has been rated the top risk for defined benefit (DB) schemes, according to a PTL survey.
Jonathan Stapleton says the DWP's progress on CDC is a welcome, and cautious, step forward.