POWERED BY MOMENTUM MEDIA
Growth super funds up 2%
The median growth superannuation fund (61% to 80% growth assets) returned 2% during the September quarter, and have mostly recovered the 12% loss experienced in February and March due to the market sell-off induced by COVID-19, according to Chant West.
The latest Chant West data found the September quarter performance was mainly driven by international shares which were up 6.9% in hedged terms, and up 3.8% in unhedged terms. Australian shares were flat with a loss of 0.1%.
Chant West senior investment research manager, Mano Mohankumar, said: “Share markets wobbled a little in September after rallying strongly for the previous five months. But again, we saw the value of diversification come to the fore – just as we did during the market crisis in February and March.
“Australian and hedged international shares were down 3.6% and 2.9% respectively for the month, but by having exposure to a wide range of growth and defensive asset sectors the median growth fund was able to contain the loss to just 0.6%.”
The research house also found that the median growth fund was up 11.5% since the end of March and had “now erased most of the 12% loss experienced back in February and March”.
“That’s despite the uncertain global economic and political backdrop. The global economy is in recession but we don’t know what pattern the downturn and eventual recovery will take. Trade tensions with China keep simmering in the background but, more immediately, all eyes will be on the upcoming US election which is only two weeks away,” Mohankumar said.
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(%)
