POWERED BY MOMENTUM MEDIA
Super funds headed for decent fiscal year-end
Chant West’s latest data has confirmed that super funds are on track to deliver a ninth straight financial year of positive returns to members, with median growth super funds gaining 0.4 per cent in May.
May’s growth, although modest, would take the total returns for this financial year to eight per cent, with a month still remaining.
Share markets were up over May which, as the main drivers of growth fund performance, contributed to the positive returns. Australian shares grew 1.2 per cent while international shares gained 1.3 per cent in hedged terms, although appreciation of the Australian dollar limited the return in unhedged terms to 0.4 per cent.
Listed property also served members well, with Australian and global REITS up 3 and 2.2 per cent respectively.
Chant West senior investment research manager, Mano Mohankumar, warned that the year’s returns would not be as high as in recent years, but was still optimistic they would hit double figures.
“Markets are up so far in June, and with less than two weeks of the financial year remaining we estimate that the median return for growth funds is sitting at about 9.3 per cent. So, the better performing funds have a chance of finishing the year in double-digit territory,” he said.
“Overall, it’s shaping up as an excellent result when you consider that the typical long-term return objective for growth funds is to beat inflation by 3.5 per cent, which in current terms translates to a return of 5.5 to six per cent.”
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The profit-to-member super fund’s MySuper default option has returned 9.85 per cent for the financial year 2024–25.
Colonial First State (CFS) has announced solid double-digit returns for its MySuper balanced and growth equivalent funds during the financial year.
The super fund’s Future Saver High Growth option delivered an 11.9 per cent return for the financial year 2024–25, on the back of a diversified portfolio and actively managed investment strategy.
HESTA has delivered a 10.18 per cent return for its MySuper Balanced Growth option in the 2024–25 financial year, marking the third consecutive year of returns above 9 per cent for the $80 billion industry fund’s default investment strategy.
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