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Double digit boost for super funds
Super fund members can anticipate double digit returns second year in a row with early estimates showing the median fund in the growth category will return about 13 per cent to 30 June.
The latest data by Chant West showed some of the better-performed funds (61 to 80 per cent allocation to growth assets) could record as much as a 16 per cent growth.
Chant West director Warren Chant said super funds have seen five consecutive years of positive returns following the global financial crisis setbacks, totalling 58 per cent overall.
“That works out at 9.6 per cent a year, which is well above the typical growth fund objective of 6.5 per cent to 7 per cent a year,” he said, adding this is comfortably above inflation, which has averaged 2.7 per cent during this time.
Chant said the key drivers were listed shares and property, which had a 57 per cent allocation.
Australian shares rose by 18.3 per cent over the year, while international shares climbed 21.8 per cent in hedged terms and 20.5 per cent on an unhedged basis.
Chant warned, however, that share markets have been sombre and more volatile in the past six months.
“With more modest share market returns expected, super fund members shouldn’t be counting on a repeat of the double digit returns of the past two years.”
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TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
