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Shares and property drive super returns
Superannuation funds have started the new financial year in broadly positive territory, according to the latest data released by Chant West.
Further, the data revealed that industry funds and retail funds had run almost neck-and-neck in terms of investment return performance during August, albeit that the industry funds have maintained their edge over the long term.
According to the Chant West data the median growth fund (61 to 80 per cent growth assets) was up one per cent for the month of August, bringing the return for the first two months of the financial year to 2.2 per cent.
The company said the August result came on the back of strong performance from listed shares and property, especially overseas which had been the main drivers of growth fund performance because they accounted for about 57 per cent of the average fund's total investments
Commenting on the result, Chant West director, Warren Chant said funds had continued to deliver on their promises at a time when there was continuing debate over the efficiency of the superannuation system.
"That's because growth funds, in which most Australians have their super money, are well diversified across growth and defensive assets, traditional and alternative, in Australia and overseas, and benefit from the skills of specialised investment managers," he said.
"Over the 22 plus years since the introduction of compulsory super, growth funds on average have gained eight per cent a year -that's well ahead of their typical return objective which is to beat inflation by 3 to 4 per cent, which given the inflation rate translates to 6 to 7 per cent a year annum," Chant said.
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TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
36.96 3 y p.a(%)
3
GAM LSA Private Shares AU I
34.22 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
VanEck Video Gaming and eSports ETF (AU)
28.89 3 y p.a(%)
