POWERED BY MOMENTUM MEDIA
Calendar year returns to hit double digits
Australian superannuation fund members look set to end 2017 on a strongly positive note, with specialist superannuation research and ratings house, Chant West, predicting many funds will end up delivering a cumulative calendar year return in the order of around 10 per cent.
The company has pointed to a gain of 1.3 per cent in November, which it said had pushed the median growth fund to a cumulative return of 10 per cent for the first 11 months of the year, suggesting a positive December would result in a vintage year.
The fact that both domestic and international equities performed well in November returning 1.7 per cent and 1.6 per cent respectively, meant that retail funds once again outperformed industry funds for the month, albeit industry funds are ahead over the longer term.
Chant West chairman, Warren Chant said that with only a handful of trading days left in 2017, it appeared certain that growth funds would finish in the black for the sixth consecutive year.
“The year to date return is sitting on 10 per cent and December has been positive so far, so a double-digit result is in sight. That would be the best year since 2013, when we saw a remarkable 17.2 per cent return,” he said.
“This is a surprisingly good result and it’s been driven by strong share markets, particularly overseas. We’ve been saying for some time that all asset sectors appear to be close to or fully valued. Add to that the uncertainty generated by the Trump election just over a year ago and you’d never have predicted such a strong performance. It just shows how investors have shut out the ‘noise’ and concentrated on the facts, which show a steadily improving global economy.”
Recommended for you
Large superannuation accounts may need to find funds outside their accounts or take the extreme step of selling non-liquid assets under the proposed $3 million super tax legislation, according to new analysis from ANU.
Economists have been left scrambling to recalibrate after the Reserve Bank wrong-footed markets on Tuesday, holding the cash rate steady despite widespread expectations of a cut.
A new Roy Morgan report has found retail super funds had the largest increase in customer satisfaction in the last year, but its record-high rating still lags other super categories.
In a sharp rebuke to market expectations, the Reserve Bank held the cash rate steady at 3.85 per cent on Tuesday, defying near-unanimous forecasts of a cut and signalling a more cautious approach to further easing.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
