POWERED BY MOMENTUM MEDIA
Super returns remain positive despite volatility
Australian superannuation fund members look set to be rewarded by a fourth consecutive year of positive returns, according to the latest data from Chant West.
The research house said however that on current indicators, the calendar year result would fall below the 12.7 per cent a year average recorded over the past three years.
It pointed to the fact that following a loss of 0.3 per cent in November, the median growth fund (61 to 80 per cent growth assets) was up 5.7 per cent for the first 11 months of 2015 and noted that while the first half of December had been negative, the median return for the year still stood at an estimated five per cent.
The Chant West analysis pointed to continuing volatility in listed share markets as being the primary factor impacting returns Australian shares were down 0.7 per cent while hedged international shares were up slightly at 0.7 per cent.
It said the appreciation of the Australian dollar (up 1 cent to US$0.72 over the month) meant that the return in unhedged terms was actually down 2.1 per cent, while listed property also had a negative month, with Australian and global REITs down 2.8 per cent and 1.2 per cent, respectively.
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(%)
