Super returns headed for annual double digits

The general buoyancy of listed investments saw retail funds outperform their industry superannuation fund counterparts in April, according to the latest data released by Chant West.

The Chant West data confirmed retail funds edged out industry funds returning 1.6 per cent versus 1.4 per cent for the period, but with the research company pointing out that industry funds continued to hold an advantage over the longer term.

The research showed that, overall, super funds were again in positive territory in April with the median growth fund (61 to 80 per cent growth assets) up 1.5 per cent – the eighth month of positive performance out of the past 10.

It said the cumulative return for the financial year to date now stood at an impressive 10.1 per cent.

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The analysis pointed out that all major asset sectors delivered positive returns in April, led by listed shares and property with Australian shares were up one per cent, while international shares advanced 1.1 per cent in hedged terms.

“However with the slide in the value of the Australian dollar over the month (down from US$0.76 to US$0.75), the return in unhedged terms was boosted to 3.6 per cent,” the analysis said. “Listed property also delivered strong returns, with Australian and global REITs up 2.6 per cent and 1.2 per cent, respectively.”

Commenting on the data, Chant West director, Warren Chant said growth funds had performed better than expected over the first 10 months of the 2017 financial year.

“With the cumulative return sitting at 10.1 per cent, it is almost certain that they’ll finish the year in the black for the eighth consecutive time – and quite possibly in the double digits,” he said.