The medium growth superannuation fund (61 to 80 per cent growth assets) gained 1.5 per cent over the September quarter thanks to the listed shares market driving growth, according to Chant West.
Chant West’s latest report found that Australian shares provided a 0.8 per cent return for the quarter and international shares four per cent on a hedged basis. However, the appreciation of the Australian dollar to US$0.78 reduced this to 2.5 per cent in unhedged terms.
Chant West director, Warren Chant, said While most of the major listed markets had share prices that moved higher in recent months, Australia had been slower than most in the upward trend. He said the other main laggard was the UK, still beset by Brexit’s uncertain ramifications.
The medium growth fund returned 9.1 per cent over the year to 30 September 2017, 9.7 over five years, and 4.9 per cent over 10 years.
The report also found that industry funds outperformed retail funds in September at one per cent compared to 0.7 per cent.
There is a need for Australia’s superannuation funds to simplify their investment menus, according to the firm, given over a third of funds have more than 30 options, of which one or more are “arguably subscale”.
The research house is set to offer research ratings of superannuation funds for the first time amid growing demand from financial advisers.
Treasury is calling for submissions on its draft regulations in relation to the calculation of the proposed Division 296 tax.
Initially intended to offer a “simple, cost-effective” option for Aussies invested in default fund options, a super consultant has weighed in on what the scheme has actually done for members.
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