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In stable equity market conditions money market funds wouldn’t be top performers.
That’s clear in the first table, where equity unit trust funds dominate performance for the year to end-June.
The money market sector was one of the worst performers over that period.
However, money market funds show their value when equity markets are volatile and going down. That can be seen in the second table, where the money market sector has been the best performer over three years. That would have included the sharp equity market correction in 2008.
Unit trust sector returns:
One year to end-June 2010
Financial 28.9%
Smaller companies 27.2%
Value 25.1%
Real estate 23.9%
Money market 7.5%
Three years to end-June 2010 (annualised)
Money market 9.8%
Income 9.6%
Varied specialist 8.8%
Foreign bond 8.4%
Domestic bond 8.3%
* Source: Profile Media and Plexus Asset Management
That’s clear in the first table, where equity unit trust funds dominate performance for the year to end-June.
The money market sector was one of the worst performers over that period.
However, money market funds show their value when equity markets are volatile and going down. That can be seen in the second table, where the money market sector has been the best performer over three years. That would have included the sharp equity market correction in 2008.
Unit trust sector returns:
One year to end-June 2010
Financial 28.9%
Smaller companies 27.2%
Value 25.1%
Real estate 23.9%
Money market 7.5%
Three years to end-June 2010 (annualised)
Money market 9.8%
Income 9.6%
Varied specialist 8.8%
Foreign bond 8.4%
Domestic bond 8.3%
* Source: Profile Media and Plexus Asset Management
