Balanced fund managers underperform

Balanced fund managers have underperformed the Australian sharemarket by more than 3 per cent over the past 10 years, a survey by InTech Financial Services reveals.

Analysis of the performance of 21 fund managers has found that the median manager of growth pooled superannuation trusts (PSTs)returned 8.69 per cent, compared with the 11.97 per cent return from the S&P/ASX 200. The best performer was Maple-Brown Abbott, which produced a return of 10.99 per cent, followed by Schroder Asset management, with a 9.65 return.

The worst performers were Citibank's Balanced Fund, with a 7.40 per cent return, and Commonwealth Financial Services with 7.68 per cent. Chris Thompson from InTech said it's not unusual for growth PSTs to underperform the local stockmarket. Growth funds invest in other assets like bonds and cash with only around 40 per cent of their assets invested in the Australian sharemarket currently. The majority invest in international shares, which returned only 8.9 per cent over the 10 years to October 31.