POWERED BY MOMENTUM MEDIA
Global share growth benefiting Aussie super balances
Australian super funds are benefiting from the global share market rally, with big gains in the US and European markets already being reflected in members’ accounts to get the new financial year off to a promising start.
SuperRatings found that the median balanced option and median growth option grew approximately 1.1 and 1.3 per cent respectively in July. Considering the average monthly return over the last five years has hovered around 0.7 per cent, this was a strong start to the fiscal year.
Global share growth was largely responsible for this, with funds with global exposure having an advantage over those focused on Australian shares as the latter took a battering partially because of the continued effects of the Royal Commission on the financial sector. The SR50 International Shares Index jumped 2.2 per cent in July, compared to a rise of half that from the SR50 Australian Shares Index.
“Super funds have ridden a wave of positive sentiment over the past few months, and this has been reinforced by strong earnings growth, especially in the US and Europe,” SuperRatings chief executive, Kirby Rappell, said.
“Despite the imminent threats to the market rally, from trade wars to Brexit to the emerging economic crisis in Turkey, nothing seems to be putting a dent in confidence.”
Recommended for you
The super fund announced that Gregory has been appointed to its executive leadership team, taking on the fresh role of chief advice officer.
The deputy governor has warned that, as super funds’ overseas assets grow and liquidity risks rise, they will need to expand their FX hedge books to manage currency exposure effectively.
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
