Super funds poised for double digit growth
Super fund members can anticipate double digit returns with early estimates showing the median fund in the growth category will return about 13 per cent to 30 June.
The latest data by Chant West showed some of the better-performed funds could record as much as a 16 per cent growth.
These are funds that have 61 to 80 per cent allocation to growth assets.
"After the setback of the GFC, we've now had five straight years of positive returns, adding up to about 58 per cent overall," Chant West director Warren Chant said.
"That works out at 9.6 per cent a year, which is well above the typical growth fund objective of 6.5 per cent to 7 per cent a year," he said, adding this is comfortably above inflation, which has averaged 2.7 per cent during this time.
Chant said the key drivers were listed shares and property, which had a 57 per cent allocation.
Australian shares rose by 18.3 per cent over the year, while international shares climbed 21.8 per cent in hedged terms and 20.5 per cent on an unhedged basis.
AUTHOR
Malavika Santhebennur
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