POWERED BY MOMENTUM MEDIA
Double digit boost for super funds
Super fund members can anticipate double digit returns second year in a row with early estimates showing the median fund in the growth category will return about 13 per cent to 30 June.
The latest data by Chant West showed some of the better-performed funds (61 to 80 per cent allocation to growth assets) could record as much as a 16 per cent growth.
Chant West director Warren Chant said super funds have seen five consecutive years of positive returns following the global financial crisis setbacks, totalling 58 per cent overall.
“That works out at 9.6 per cent a year, which is well above the typical growth fund objective of 6.5 per cent to 7 per cent a year,” he said, adding this is comfortably above inflation, which has averaged 2.7 per cent during this time.
Chant said the key drivers were listed shares and property, which had a 57 per cent allocation.
Australian shares rose by 18.3 per cent over the year, while international shares climbed 21.8 per cent in hedged terms and 20.5 per cent on an unhedged basis.
Chant warned, however, that share markets have been sombre and more volatile in the past six months.
“With more modest share market returns expected, super fund members shouldn’t be counting on a repeat of the double digit returns of the past two years.”
Recommended for you
Taking a purely passive investment approach is leaving many investors at risk of heightened valuation risks, Allan Gray and Orbis Investments have cautioned.
Annual trimmed mean inflation saw a slight spike in April, according to data from the ABS.
Active managers say that today’s market volatility and dislocation are creating a fertile ground for selective stock picking, reinforcing their case against so-called “closet indexers”.
Platform leaders admit they’re operating under constant pressure and a persistent “state of paranoia” to keep pace with technology that is reshaping how clients access and interact with their wealth.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
