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Super returns stay in double-digits
Superannuation funds are on track to finish the current financial year in double-digit territory, according to the latest data from Chant West.
The data, released today, revealed that the median growth fund had gained 1 per cent in March and that this had pushed the return for the nine months of the financial year to date to "a very healthy" 10.5 per cent.
According to Chant West principal Warren Chant, the main driver for the positive returns in March remained listed shares, notwithstanding what he described as a mixed quarter.
Chant said the typical long-term return objective for a growth fund was to deliver inflation plus 3.5 per cent a year which, with long-term inflation running at just under 3 per cent, translated to about 6.5 per cent.
"The financial year to date return of 10.5 per cent is comfortably ahead of that return objective," he said. "With just one quarter remaining in the financial year, there is a good chance that funds will deliver a fifth consecutive positive return. Any gain from here to the end of June would ensure that the annual result finishes in the double digits."
Chant noted that over the past four financial years there had been consecutive positive returns of 10.4 per cent in 2009/10, 9.2 per cent in 2010/11, 0.5 per cent in 2011/12 and 15.6 per cent in 2012/13.
"Since the GFC low point at the end of February 2009, growth funds have now advanced 66 per cent," he said. "So not only have they recovered all their GFC losses, but they now stand 22 per cent above their pre-GFC high reached at the end of October 2007."
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