QSuper tops super funds

With super funds finishing on a high for the 2014/15 financial year, QSuper topped the charts as the top-performing fund returning 12.3 per cent, according to Chant West data.

The financial year ended with super funds returning 9.8 per cent, the sixth straight positive annual return, the research and consultancy firm said.

Chant West's director, Warren Chant, said growth fund members who kept their nerve and did not switch investment options saw their accounts make a full recovery from the depths of the global financial crisis (GFC).

"Since the GFC low point at the end of February 2009, growth funds have delivered an impressive 88 per cent, putting them 37 per cent above their pre-GFC high of October 2007," Chant said.

VIEW ALL

View all

"The better performing funds were generally those that maintained a relatively high exposure to foreign currency (because of the decline in Australian dollar value), Australian listed property and private equity, and a lower exposure to Australian shares, the broader bond market, hedge funds, and cash."

Chant noted that although QSuper's Balanced option was the top performer it had a relatively low allocation to foreign currency and Australian listed property.

"Its success was driven mainly by strong returns from its investment in long-duration bonds, to which most other funds have little to no exposure, and its unlisted assets including infrastructure, property, and private equity. It also benefited from a lower than average allocation to Australian shares," he said.

Chant West's report found unhedged international shares was the strongest performing asset returning 25.2 per cent. Australian listed property also stood out with a 20.2 per cent return. Australian shares were the worst performer among the traditional growth sectors, with a return of 5.6 per cent. Private equity was the strongest performing alternative asset sector with a return of 20 per cent.

The data noted industry funds outperformed retail funds over the year, returning 10.2 per cent versus 9.6 per cent.