Listed shares drive super growth: Chant West

Robust share markets have seen the median growth fund in super funds up 12.8 per cent, the second consecutive positive double digit return. 

Chant West research showed the strong 2013/14 result was mainly due to good performance by listed shares, both domestically and internationally.  

Those funds with higher exposure to growth assets and lower exposure to cash and bonds performed better. 

In fact, cash and bonds brought out the lowest results. 

VicSuper came out on top among funds, with VicSuper growth returning 15.8 per cent, along with Telstra Super Balanced, which also returned 15.8 per cent. 

Industry funds beat retail over the year, returning 13.1 per cent versus 12.7 per cent. Industry funds returned 7.1 per cent per annum, versus 6.3 per cent for retail funds over ten years to June 2014. 

“Over the longer term, industry funds have outperformed retail funds largely because, as a group, they tended to have lower allocations to listed shares during periods when shares underperformed,” Chant West director Warren Chant said.  

“That historical difference in allocation no longer applies, but equally important is that they have always had higher allocations to unlisted assets such as private equity, unlisted property and unlisted infrastructure (currently 19% versus 5%), which have performed well for them.”  

International shares rose 21.9 per cent in hedged terms, while it was at 20.4 per cent in unhedged terms due to the rise of the Australian dollar. 

Australian shares returned 17.3 per cent. 

Unlisted property was up by 9.4 per cent while unlisted infrastructure returned 9.3 per cent. Global listed infrastructure came out at 24.6 per cent. 

Defensive assets delivered lower but positive returns, with Australian bonds, international bonds and cash gaining 6.1 per cent, 7.8 per cent and 2.7 per cent.