Third year of double-digit returns in prospect
Australia’s superannuation funds remain on track to deliver another year of double-digit returns, despite indifferent performances through April and May, according to Sydney-based research house SuperRatings.
SuperRatings managing director Jeff Bresnahan said April had again generated an increase in the majority of funds’ balanced investment option, and this had taken the average financial year to date return to 15.9 per cent.
“Even allowing for a negative month in May, there is every chance 2005-06 results will match the last two year’s results of 13 per cent and 13.1 per cent respectively,” he said.
Bresnahan said on a tax and fee adjusted basis, the year to date numbers for the top performing funds looked impressive, with Telstra Super leading the way with a return of 19.2 per cent, followed by Local Super with 18.9 per cent and VSSF with 18.6 per cent.
Importantly, the SuperRatings data had AMP Custom Super running fifth, with a return of 18.4 per cent.
Bresnahan cautioned against superannuation fund members becoming unduly optimistic about ongoing double-digit returns, warning that some steam was likely to come off the level of returns in the near future.
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(%)
