POWERED BY MOMENTUM MEDIA
Positive super return for 2015/16? Be happy!
Superannuation fund members should not be disappointed with any financial year return which ends in positive territory, according to Chant West principal, Warren Chant.
Releasing data on the performance of the median growth fund, the Chant West analysis said that after a disappointing start to the year, super funds posted a second consecutive positive month in April and were edging closer to a positive financial year result.
It said that following a rise of 1.8 per cent in March, the median growth fund (61 to 80 per cent allocation to growth assets) gained another 1.4 per cent in April, taking the return over the ten months of the financial year to date to 1.7 per cent.
"We estimate that the median growth fund is up a little over one per cent so far in May, so with only six weeks remaining we're now sitting at about three per cent for the financial year to date. That means it's slightly better than an even-money bet that we'll see a seventh consecutive positive year," Chant said.
"It's pretty certain we're not going to see a result as strong as the previous three years (15.6 per cent in 2012/13, 12.8 per cent in in 2013/14 and 9.8 per cent in 2014/15), but members shouldn't be too disappointed with anything in positive territory," he said.
The Chant West analysis pointed to Australian shares being the main positive contributors in April, rising 3.3 per cent over the month with hedged international shares up 0.8 per cent.
However it noted that because of the slight depreciation of the Australian dollar (down from US$0.77 to US$0.76) the return in unhedged terms was higher at 2.4 per cent.
Listed property was mixed, with Australian REITs up 2.8 per cent but global REITs down 0.7 per cent.
Industry funds, despite their higher allocation to unlisted investment, performed neck and neck with retail funds in April, but continued to outperform their retail counterparts over the long haul, albeit that retail funds outperformed over seven years.
Recommended for you
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.
As institutional investors grapple with shifting sentiment towards US equities and fresh uncertainty surrounding tariffs, Australia’s Aware Super is sticking to a disciplined, diversified playbook.
Market volatility continued to weigh on fund returns last month, with persistent uncertainty making it difficult to pinpoint how returns will fare in April.
The Association of Superannuation Funds of Australia (ASFA) has called for the incoming government to prioritise “certainty and stability” when it comes to super policy.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
