Double digit FY still in prospect

Superannuation fund members appear headed towards a sixth consecutive year of double digit returns, despite a less than stellar investment performance in April, according to the latest data from Chant West.

While noting that the median growth fund lost 0.4 per cent in in April, Chant West principal, Warren Chant, said funds well on track to deliver a sixth consecutive positive financial year, with the return over the ten months of the year to date standing at a very healthy 10.9 per cent.  

Explaining the lack-lustre performance recorded in April, he said listed share markets had experienced a mixed month with Australian shares giving up some of their recent gains and retreating 1.6 per cent, while international shares were up 1.1 per cent in hedged terms but, due to the appreciation of the Australian dollar had recorded a 0.8 per cent unhedged loss.

Chant said the April performance had highlighted the benefits of diversification.

VIEW ALL

View all

The Chant West data confirmed that, based on their lower allocation to shares and listed property, industry funds had outperformed retail funds in April, though both were in negative territory.

Industry funds returned negative 0.3 per cent, compared to retail funds which were down 0.7 per cent.