POWERED BY MOMENTUM MEDIA
Funds head towards strong end to calendar year
Super funds had a strong month in October, with the median growth fund (61 to 80 per cent allocation to growth assets) jumping 1.8 per cent, Chant West research showed.
This brings the return over the first four months of the current financial year to 6.8 per cent. This follows a 15.6 per cent return for the 2012/13 financial year, the highest single-year return since 1997.
"The typical long-term return objective for growth funds is to exceed inflation plus 3.5 per cent per annum over rolling five years, which translates to a return of about 6.5 per cent," Chant West director Warren Chant said.
"The strong performance over the past 18 months, coupled with the GFC-period continuing to work its way out of the five-year return, has seen the median growth fund's return over this period rise quite markedly."
Chant West conducted a multi-manager survey, in categories such as all growth, high growth, growth, balanced and conservative. It looked at returns in one year, three years, five years, seven years and 10 years.
The one-year and three-year returns showed the strong performance of listed shares and property, so the more aggressive fund categories — which have a higher proportion invested in those assets — produced the best performance.
The five-year returns showed significant improvements in the recent months but the "GFC effect" continues to bog down seven-year returns.
Share markets performed well in October, with Australian shares returning 3.9 per cent.
"Domestically, the RBA kept rates on hold at 2.5 per cent at its November meeting. While most recent economic data released has been upbeat, it's too soon to know whether this improvement is sustainable," Chant said.
Recommended for you
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
ASIC chair Joe Longo says superannuation trustees must do more to protect members from misconduct and high-risk schemes.
Super fund mergers are rising, but poor planning during successor fund transfers has left members and employers exposed to serious risks.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
