Strong currency hurting super returns
Growth superannuation returns ranged from a low of 6.6 per cent to as high as 12.5 per cent last financial year, according to new data released by researcher Chant West.
The research revealed the median growth super return was 9.2 per cent.
Chant West principal Warren Chant (pictured) said the main drivers for performance had been the global and international share markets, with the financial year capable of being split into two distinct periods.
“The first nine months saw strong domestic and global share markets, which were the main drivers for growth fund performance, push the running return for the year up to 10 per cent,” he said.
“In the June quarter, however, we saw share markets falter on the back of ongoing concerns about a slowdown in China, negative economic data coming out of the US and a resurfacing of the European debt crisis.”
Chant said another factor to stifle returns had been the appreciation of the Australian dollar.
“We estimate that the currency effect detracted about 3 per cent from the typical growth fund performance over the year,” Chant said.
AUTHOR
Mike Taylor
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