POWERED BY MOMENTUM MEDIA
Super returns on track to see strong calendar year finish
The strong rally of sharemarkets, both globally and in Australia, has continued to drive strong returns for super, according to Chant West.
The median growth fund (61–80 per cent in growth assets) rose 1.2 per cent over the month of September, driving the calendar year return to an “impressive” 8.6 per cent to date.
Meanwhile, the all-growth (96–100 per cent in growth assets) and high growth (81–95 per cent in growth assets) delivered 1.7 per cent and 1.3 per cent, respectively.
“Given the strength of sharemarkets this year, higher risk categories have fared even better so far,” said Chant West senior investment research manager Mano Mohankumar.
Other risk categories, namely the balanced (41–60 per cent in growth assets) and conservative (21–40 per cent in growth assets) also rose, albeit more modestly, at 1 per cent and 0.7 per cent, respectively.
Mohankumar said that sharemarkets proved to be primary drivers of growth fund performance, with the median growth option seeing 25 per cent allocated to Australian shares and 30 per cent to international shares.
“In September, sharemarkets globally benefited from the US Federal Reserve officially cutting interest rates for the first time since March 2020, with more to come. While a reduction was largely already priced into markets, the 50-basis point cut was larger than usual,” Mohankumar said.
“Markets were also boosted by China announcing a raft of stimulus measures to lift economic growth and support its struggling property market.”
In September, Australian shares returned an impressive 3.1 per cent while developed international shares were up 1.5 per cent in hedged terms.
“The appreciation of the Australian dollar (up from US$0.68 to US$0.69) turned that into a small loss of 0.5 per cent in unhedged terms,” he said.
The average super fund holds approximately 70 per cent of its international shares exposure unhedged.
Meanwhile, emerging markets shares also outperformed developed markets, led by China, delivering a return of 4.3 per cent.
Mohankumar highlighted bond markets were also on the rise in September, with Australian and international bonds returning 0.3 per cent and 1.1 per cent, respectively, as bond yields fell.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
Recommended for you
While the Liberal senator has accused super funds of locking everyday Australians out of the housing market, industry advocates say the Coalition’s policy would only push home ownership further out of reach.
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.
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(%)
