POWERED BY MOMENTUM MEDIA
Super funds gain 0.5 per cent in May
Superannuation funds are on track to producing strong double-digit returns for the financial year after the 11 months of the financial year returned 10.4 per cent, according to Chant West.
Chant West’s latest report found the median growth fund (61 to 80 per cent growth assets) gained 0.5 per cent in May.
The report said listed shares, which were the main drivers of growth fund performance, produced mixed results in May. Australian shares fell 2.7 per cent over the month, international shares were up 1.6 per cent on a hedged basis and was at 2.8 per cent in unhedged terms due to the depreciation of the Australian dollar. Australian real estate investment trusts (REITs) were down one per cent, and global REITs up 0.5 per cent.
Chant West director, Warren Chant, said the year’s performance came off the back of a seven-year run where growth funds returned an average of 8.8 per cent per annum.
“This year looks like increasing that average. Funds are performing well above the rate of inflation and well ahead of their own inflation-adjusted targets. That’s really impressive, especially since we’ve been through a long period of uncertainty, both economic and political,” Chant said.
“We’re not out of the woods yet, but the economic indicators are certainly looking better now than they were a year ago.”
The report also found that industry funds outperformed their retail counterparts in May, with a return of 0.6 per cent versus 0.3 per cent respectively.
Industry funds also held the advantage over the longer term, with a 5.2 per cent per annum return compared to 4.4 per cent for retail funds over the 10 years to May 2017.
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(%)
