Super returns for the long haul
If anyone doubted the benefit of superannuation as an investment they need only look at the latest data released by Intech Investment Consultants.
At the same time as confirming that Australian superannuation funds had recorded another year of double digit returns in 2005, Intech revealed that over the past 20 years the median Australian superannuation fund had averaged a return of 10.9 per cent a year - equating to 7.2 per cent better than inflation.
InTech’s chief investment officer, Ron Liling said that year-on-year returns could be quite volatile.
“Average calendar year returns by super funds have ranged from a high of around 33 per cent in 1986 to a low of minus 6 per cent in 2002,” he said. “This phenomenon should send a very clear message to superannuation fund investors and fund trustees - that investment markets will play their part provided they are given time to do so.”
Looking at 2005, the Intech data revealed a 3.5 per cent return for the median fund in the ‘Intech Super Growth Universe’ generating a calendar year return of 14.4 per cent.
The best performed fund in 2005 was industry fund LUCRF diversified which returned 17.5 per cent, followed by Westscheme which returned 17.3 per cent and ESI Super Balanced which returned 15.4 per cent.
The best performed retail fund was AMP Balanced Growth which returned 16.4 per cent, followed by BGI Diversified which returned 16 per cent and Merrill Lynch Balanced which returned 15.9 per cent.
The best performed public sector fund was Q Super Balanced which returned 15.5 per cent, followed by STC Growth which returned 15.3 per cent and First State Super Diversified which returned 14.8 per cent.
AUTHOR
Mike Taylor
Recommended for you
The structural shift towards active ETFs will reshape the asset management industry, according to McKinsey, and financial advisers will be a key group for managers to focus their distribution.
ASIC has warned that practices across the $200 billion private credit market are inconsistent and, in some cases, require serious improvement.
A surge in electricity prices has driven the monthly Consumer Price Index to its highest level in a year, exceeding forecasts.
Infrastructure well-positioned to hedge against global uncertainty, says investment chief.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
3
DomaCom DFS Mortgage
67.30 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
