Growth funds return to pre-GFC highs: Chant West
Super funds saw positive growth in July, with the median growth fund (61-80 per cent growth assets) producing 1.2 per cent, Chant West data showed.
This comes after the 2013/14 financial year showed a 12.8 per cent return, the fifth positive year in a row.
The data showed listed shares and property, which has an average weighting of around 57 per cent, had mixed results.
Australian shares rose 4.4 per cent, listed property rose 5 per cent, while global listed property climbed 1 per cent.
The strong performance in the Australian share market was driven by better economic data from China, and the country's anti-corruption campaign.
But international shares shrunk 1 per cent in hedged terms, but the loss in the Australian dollar (down from US$0.94 to $0.93) reduced the loss to 0.2 per cent in unhedged terms.
"While the economic recovery from the GFC remains a work in progress, the recovery in investment markets is complete," Chant West director Warren Chant said.
"Although it did take some time, all five of our five risk categories, ranging from conservative to all growth, are now comfortably ahead of their pre-GFC highs achieved in October 2007."
Growth funds are 27 per cent above the pre-GFC high in October 2007, while the most aggressive all growth category is 17 per cent above its GFC high, Chant added.
But seven year returns still seem to be bogged down by the ‘GFC effect'.
Retail funds beat industry funds in July, returning 1.4 per cent against 1.2 per cent. But over a 15-year period to the end of July, industry funds returned an annualised 7 per cent, while retail funds returned 5.8 per cent.
AUTHOR
Malavika Santhebennur
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