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.
Australia’s second largest super fund has added thermal coal companies to its list of investment exclusions.
The fund has expanded its corporate superannuation solutions to partner with Australian businesses of all sizes.
The chief executive of Aware Super anticipates a significant shift in how ESG factors will influence portfolio values in the next six years, surpassing the changes witnessed in the past two decades.
In a recent statement, shadow assistant minister for home ownership and Liberal senator for NSW, Andrew Bragg, accused ‘big super’ of fabricating data attributed to the Reserve Bank of Australia to push their agenda.
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