How much could super funds return in 2023?

20 November 2023
| By Laura Dew |
image
image image
expand image

With the calendar year end fast approaching, Chant West has shared how much it is expecting the median growth super fund to return.

Over the full year, it expects the median growth fund (those with 61 to 80 per cent growth assets) to return 6.5 per cent.

Since the start of January, the median growth fund has returned 3.7 per cent so far and by 4.3 per cent over the past 12 months. 

Looking at other investment options, the High Growth option (81 to 95 per cent growth assets) has gained 4.6 per cent over the calendar year to date and by 5.2 per cent over the last 12 months. The Balanced option (41 to 60 per cent growth assets) is up by 3.1 per cent and 3.7 per cent respectively.

During October, the median growth option fell by 1.5 per cent as share and bond markets both fell amid concern around interest rates. This was the second consecutive month it had reported losses after falling by 1.9 per cent in September and funds have suffered in the new financial year with all investment options reporting losses since 1 July 2023.

Chant West senior investment research manager, Mano Mohankumar, said: “The tragic events in the Middle East also weighed on markets in October. Over the month, Australian shares fell 3.8 per cent while developed market international shares fell 2.6 per cent in hedged terms. 

“However, the depreciation of the Australian dollar against all major currencies reduced the loss in unhedged terms to just -1 per cent and super funds, on average, have about 70 per cent of their international shares exposure unhedged. Emerging markets shares were down 2 per cent for the month. Australian bonds fell 1.8 per cent while international bonds fell 0.8 per cent, as bond yields rose again during October.”

 

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

11 months 2 weeks ago
Kevin Gorman

Super director remuneration ...

11 months 3 weeks ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

11 months 3 weeks ago

Law firm Maurice Blackburn has announced it has reached a settlement with MLC over a class action alleging delays in transferring members to MySuper products....

2 days 8 hours ago

While Australian super funds continue to generate impressive long-term returns, the volatility of those returns has put the spotlight on the impact of fees and costs, a n...

3 days 9 hours ago

Economic growth was weaker than expected, once again highlighting an economy largely sustained by population growth and government spending....

3 days 10 hours ago

TOP PERFORMING FUNDS