The medium growth superannuation fund (61 to 80 per cent growth assets) gained 1.5 per cent over the September quarter thanks to the listed shares market driving growth, according to Chant West.
Chant West’s latest report found that Australian shares provided a 0.8 per cent return for the quarter and international shares four per cent on a hedged basis. However, the appreciation of the Australian dollar to US$0.78 reduced this to 2.5 per cent in unhedged terms.
Chant West director, Warren Chant, said While most of the major listed markets had share prices that moved higher in recent months, Australia had been slower than most in the upward trend. He said the other main laggard was the UK, still beset by Brexit’s uncertain ramifications.
The medium growth fund returned 9.1 per cent over the year to 30 September 2017, 9.7 over five years, and 4.9 per cent over 10 years.
The report also found that industry funds outperformed retail funds in September at one per cent compared to 0.7 per cent.
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.