POWERED BY MOMENTUM MEDIA
Industry super funds only just ahead
Superannuation fund returns look likely to end the financial year in the high single digits, despite faltering in May, with the industry funds just edging out the retail master trusts, according to Chant West.
The data revealed industry funds and master trusts performed broadly in line with each other returning 0.2 per cent and 0.3 per cent respectively in May and by 10 per cent and 9.9 per cent in financial year to date terms.
Chant West director, Warren Chant said that while the median growth fund return had retreated 0.2 per cent during May, the return for the financial year to date was 10 per cent.
Chant warned, however, that the data for June suggested that super fund members might have to settle for high single digit returns.
“This is still a pleasing result and can be viewed as a year of consolidation on the back of last year’s 10.4 per cent return,” he said.
“West estimate the return to the end of June will be about 8 per cent after investment fees and tax, which is above the long-term expected return of about 7 per cent a year for growth funds,” Chant said.
AUTHOR
Mike Taylor
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
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(%)
