POWERED BY MOMENTUM MEDIA
Solid FY21 start for median growth super funds
The median growth superannuation fund (61% to 80% growth assets) started the 2021-22 financial year up 1.1%, according to Chant West.
The research house found in July both Australian shares (1.1%) and international shares were up in hedged terms (1.7%), and were boosted to 4% in unhedged terms because of the Australian dollar depreciation over the month.
However, emerging market shares were down 4.7% during July in unhedged terms led by falls in the Chinese market. The Chinese government’s regulatory crackdown on technology and private education sectors sparked a sell-off.
Bonds during July were up both domestically and globally at 1.8% and 1.3% respectively.
Chant West senior investment research manager, Mano Mohankumar, said: “It’s a solid start, and a continuation of the remarkable bounce-back we’ve seen over the past 16 months.
“The cumulative return since the COVID low point at end-March last year is now about 27%, which is astonishing given the ongoing disruptions caused by the pandemic. Not only have we recovered all the losses incurred in the early COVID period, but we’re now sitting about 12% above the pre-COVID crisis high that was reached at the end of January 2020.”
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(%)
