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Super returns headed for annual double digits
The general buoyancy of listed investments saw retail funds outperform their industry superannuation fund counterparts in April, according to the latest data released by Chant West.
The Chant West data confirmed retail funds edged out industry funds returning 1.6 per cent versus 1.4 per cent for the period, but with the research company pointing out that industry funds continued to hold an advantage over the longer term.
The research showed that, overall, super funds were again in positive territory in April with the median growth fund (61 to 80 per cent growth assets) up 1.5 per cent – the eighth month of positive performance out of the past 10.
It said the cumulative return for the financial year to date now stood at an impressive 10.1 per cent.
The analysis pointed out that all major asset sectors delivered positive returns in April, led by listed shares and property with Australian shares were up one per cent, while international shares advanced 1.1 per cent in hedged terms.
“However with the slide in the value of the Australian dollar over the month (down from US$0.76 to US$0.75), the return in unhedged terms was boosted to 3.6 per cent,” the analysis said. “Listed property also delivered strong returns, with Australian and global REITs up 2.6 per cent and 1.2 per cent, respectively.”
Commenting on the data, Chant West director, Warren Chant said growth funds had performed better than expected over the first 10 months of the 2017 financial year.
“With the cumulative return sitting at 10.1 per cent, it is almost certain that they’ll finish the year in the black for the eighth consecutive time – and quite possibly in the double digits,” he said.
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The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.
Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financial year, but an economist has warned that the rally may be harder to sustain as key risks gather pace.
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.
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