Income funds have beaten Australian managed funds in February, which have posted their second monthly decline on the back of market volatility.
Income fund categories including global bonds and mortgages produced gains of 0.41 per cent and 0.50 per cent, respectively according to Morningstar. The mortgages aggressive category also climbed 0.63 per cent.
“In times of high volatility you would expect income funds to shine through and in the last couple of months it has,” Morningstar head of adviser and research Anthony Serhan said.
Australian managed funds in the large-cap value category declined 1.94 per cent in February. The blend and growth categories fell 1.36 per cent and 1.52 per cent respectively.
The S&P/ASX 200 saw a fall of 1.38 per cent in February.
Australian listed property funds fell 5.61 per cent for February, making it the worst performing category of the month.
Serhan said market volatility would continue over the next few months as the sub-prime collapse continues to unfold in the markets.
“There is still more downside risk,” he said.
