Stronger markets see retail funds outperform industry funds
Stronger share markets have seen Australian superannuation fund returns closing in on the highs achieved prior to the global financial crisis.
Both Chant West and SuperRatings have pointed to the improving returns for superannuation funds with the median growth fund returning 1.7 per cent during August, bringing the financial year-to-date return to 2.9 per cent, while median balanced return was 1.6 per cent for August and 2.7 per cent for the financial year-to-date.
The strength of the share markets also meant that retail master trusts - with their higher allocation to listed shares and listed property - outperformed the industry funds, returning 1.9 per cent compared to 1.6 per cent.
Commenting on the returns data, Chant West principal Warren Chant said shares had been the main drivers of growth fund performance.
"To the end of August the median fund has returned a healthy 34.5 per cent since share markets bottomed in late February 2009, and it now only needs another 2.5 per cent to return to the pre-GFC level reached at the end of October 2007," he said.
SuperRatings founder Jeff Bresnahan said that despite the GFC and the resultant market turmoil over the past five years, Australians had still seen their super fund return around 77 per cent in relative terms over the past decade.
SuperRatings listed the top five balanced investment option funds over the past five years as being:
- LGsuper Accumulation - Balanced (3 per cent)
- Commonwealth Bank Group Super - Mix 70 (2.8 per cent)
- REST - Core Strategy (2.4 per cent)
- Local Super growth option (1.5 per cent), and
- CareSuper Balanced (1.5 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.
