Master trust funds have outperformed industry trusts in the fiscal year ending on June 2010, with return rates of 12 per cent compared to rates of 9.7 per cent for industry trusts.

According to the latest report released by Chant West, this a rare occurrence, as this has only happened once in the past decade, when the retail trusts outperformed their rivals, the not-for-profit funds.

Warren Chant, director of Chant West, asset master trust funds had a greater allocation to listed property and shares on average than industry trusts, and had gained more returns as those markets thrived for most of the fiscal year.

"Conversely, they have a much lower allocation to unlisted property, infrastructure and private equity, which produced relatively poor returns," Mr. Chant added.

Mr. Chant also noted that for the longer term, the policies for strategic allocation of industry trusts have worked very well for them, as unlisted assets allocation complemented performance and decreased volatility.

"They do mean slightly higher investment costs, but those extra costs have been more than justified by the added benefits," Mr. Chant remarked.

Chant West also disclosed their list of the 10 best performing growth trusts, which is led by BT Multi Manager that balanced at 13.9 per cent, and closely followed by Rusell which balanced at 13.5 per cent returns. The top list also includes AMP Future Directions, CFS First Choice, and MLC Horizon.