Industry, retail funds neck and neck

20-Sep-2017

By Megan Tran

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The latest Chant West report showed industry and retail funds’ performances were on par with each other in August after returning 0.6 per cent over the month.

The results were another modest showing after a 0.1 per cent average return in July.

However, industry funds continued to outrank over the medium term, returning 8.6 per cent over the 12 months to August compared to 7 per cent for retail funds.

Chant West director Warren Chant said the slow start to the new financial year was expected and should be put into context with the strong 10.8 per cent average return for the 2017 financial year.

“While the economic outlook is much better than it was a year ago, both listed and unlisted assets have had a great run and most asset sectors are now fully valued or close to it,” Chant said.

Meanwhile, internationally, macroeconomic data in the United States was positive, including gross domestic product growth for the June quarter rising from 2.6 per cent to 3 per cent, Chant said.

But tensions between the US and North Korea affected investor sentiment, along with the aftermath of Hurricane Harvey.

Economic data from Europe remained positive, with Asian counterparts also experiencing strong growth.

“In the Asia-Pacific, the Chinese economy continues to show signs of improvement, which is good news for Australia given our strong trade links,” Chant said.

“Back home, the RBA (Reserve Bank of Australia) again kept interest rates on hold at 1.5 per cent earlier this month, citing the continuing improvement in the global economy.”

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