Financial year super returns positive - just
Despite continuing market volatility and a couple of negative quarters, most superannuation fund members can expect to see marginally positive returns for the financial year, according to the latest data released by Chant West.
According to Chant West principal Warren Chant, early estimates suggest the median growth fund will post a return of about one per cent for the year to 30 June on the back of the 10.4 per cent financial year returns posted in 2010 and the 9.2 per cent posted last year.
"While the small positive return is well below the typical long-term objective of inflation plus 3.5 per cent, it is not a bad outcome when you consider the year has been fraught with uncertainty in global financial markets," he said.
"Having said that, some funds will have performed better than others and some members will experience negative returns," Chant said.
He said Chant West was expecting the range of returns within the growth category to be between minus 1.5 per cent to plus six per cent.
Chant said diversification had rescued a number of funds from what could have been a much worse outcome.
He said that while shares had dominated growth fund portfolios and share markets had gone backwards over the year, the fact that funds had invested across a wide range of traditional and alternative assets had given them resilience.
Chant said the strongest performances had been in the defensive sector of bonds, with Australian bonds posting a healthy 12.4 per cent return, while international bonds were up 11.6 per cent.
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
