|
| Warren Chant |
Superannuation funds will post their first positive growth year for three years in 2009-10, with a median growth fund likely to return an estimated 10 per cent, according to preliminary Chant West data.
Despite poor returns in May and June it was a year when it paid to be in conventional assets like shares and property, according to Chant West principal Warren Chant.
“A year ago we were reporting a median return of minus 13 per cent, which was the worst result since the introduction of compulsory super in 1992, so a healthy positive return this year will come as a welcome relief,” Chant said.
He added that not all funds benefited from the recovery to the same degree, which would lead to an unusually wide range of returns.
“We’re expecting that the performances in our growth category will range from about 6 per cent to 14 per cent — so some members will be smiling more than others,” he said.
Retail master trusts will be among the best performers for the year due to a higher exposure to listed share and property markets, with some of the previous year’s worst performers among the top 10 in 2009-10. That would make 2009-10 just the second time in the past 10 years that master trusts outperformed industry funds, according to Chant West.
