POWERED BY MOMENTUM MEDIA
Fiscal year super returns head for double digits
Most superannuation fund members are now almost certain to experience their sixth consecutive financial year of positive returns, with little splitting the performance of retail and industry funds over that period.
That is the analysis of actuarial firm, Chant West, which has reported the median growth fund (61 to 80 per cent growth assets) gaining one per cent in May, shrugging off some of the negativity of April and making it almost certain that they'll deliver a sixth consecutive positive financial year, with the return over the 11 months of the year to date standing at 11.9 per cent.
Retail superannuation funds have more than matched it with industry funds over the six years of recovery from the Global Financial Crisis because of the rise and rise of listed equities, and May proved no different with share markets having a positive month.
The Chant West data said Australian shares were up slightly with a return of 0.4 per cent, while international shares were up 1.3 per cent in hedged terms but due to the Australian dollar's depreciation over the month (down from US$0.79 to US$0.77), the unhedged return was even higher at 3.5 per cent.
It said listed property was mixed with Australian REITs up 2.7 per cent but global REITs were down 0.2 per cent.
Commenting on the data and the outlook for another financial positive financial year return, Chant West director, Warren Chant, said that even factoring in the share market losses over the first half of June, it was still quite possible that the median growth fund would finish the financial year in double digit territory for the third year in succession.
"With only two weeks of the financial year remaining, we estimate that growth funds are up 10 per cent with returns in this category likely to range between seven per cent and 14 per cent," he said.
"This follows returns of 15.6 per cent in 2012/13 and 12.8 per cent in 2013/14."
Recommended for you
A ratings firm has placed more prominence on governance in its fund ratings, highlighting that it’s not just about how much money a fund makes today, but whether the people running it are trustworthy, disciplined, and able to deliver for members in the future.
AMP has reached an agreement in principle to settle a landmark class action over fees charged to members of its superannuation funds, with $120 million earmarked for affected members.
Australia’s second-largest super fund is prioritising impact investing with a $2 billion commitment, targeting assets that deliver a combination of financial, social, and environmental outcomes.
The super fund has significantly grown its membership following the inclusion of Zurich’s OneCare Super policyholders.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
