POWERED BY MOMENTUM MEDIA
Strong start to 2015 delivering super returns
Super funds have continued to grow steadily in 2015 on the back of listed share markets, according to superannuation research firm Chant West.
Australian shares increased by 6.9 per cent, while international shares rose 5.9 per cent in hedged terms and 5.3 per cent unhedged. Listed property was mixed with Australian real estate investment trusts (REITs) up 3.7 per cent and global REITs down 0.7 per cent.
Chant West also said that the median growth fund (61 to 80 per cent growth assets) rose 3.1 per cent in February, following a two per cent rise in January.
"There were several factors that contributed to the positive share market sentiment in February, including a rebound in oil prices," Chant West's director, Warren Chant, said.
"We also saw improving economic data in the Euro zone, and optimism over the impact of the European Central Bank's newly-implemented asset purchasing programme. Easing of concerns surrounding Greece and Russia also helped the market's mood."
Chant said that a 27 per cent of a typical growth fund were in Australian shares, and 26 per cent in international shares.
The firm also found that retail funds and industry funds had a return of 3.2 per cent and 3.1 per cent respectively in February. However, industry funds still hold the advantage in the longer term with a return of 7.3 per cent per annum against 6.2 per cent for retail funds over the 15 years to February 2015.
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(%)
