POWERED BY MOMENTUM MEDIA
Super returns defy volatility
Superannuation fund returns edged back into positive territory in February despite share market volatility, according to the latest data from specialist research house, Chant West.
The Chant West analysis noted that after experiencing sharp losses in early February on the back of sliding share markets, the median growth superannuation fund (61 to 80 per cent in growth assets) recovered to finish the month barely in the red, down just 0.2 per cent.
It said that despite the challenging start to February, financial year to date returns remained at a healthy 6.5 per cent.
Looking at the February volatility, the Chant West analysis said share markets around the world had retreated with hedged international shares losing 3.6 per cent, but a lower Australian dollar (down from US$0.81 to US$0.78) limited the fall to 0.4 per cent in unhedged terms.
Commenting on the result, Chant West senior investment research manager, Mano Mohankumar pointed out that share markets were not the sole drivers of superannuation fund performance.
“Members sometimes panic when they hear about share markets falling sharply, but they need to remember that the typical growth fund only has about 55 per cent of its assets in listed shares and property,” he said.
“These funds invest in a wide range of other assets as well, including alternative and unlisted assets, so when share markets stumble this diversification enables them to cushion the blow – as happened in February.”
Recommended for you
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
Big business has joined the chorus of opposition against the proposed Division 296 tax.
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
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
