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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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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(%)
