Fund returns make flat start to 2017/18
Industry funds and retail funds returns started the new financial year neck and neck, according to the latest data released by Chant West.
The data, released today, revealed that super fund returns were flat over July with the median growth fund providing a zero return.
This meant that retail and industry funds finished equal, but Chant West noted that industry funds continued to hold the advantage over the medium and longer term, ahead by between 0.9 per cent and 1.6 per cent a year.
Looking at July, the Chant West analysis said listed shares, which were the main drivers of growth fund performance, produced mixed results over the month with Australian shares and international equities up 1.5 per cent on a hedged basis but undermined by the appreciation of the Australian.
It said listed property was also mixed, with Australian real estate investment trusts (REITs) down 0.2 per cent and global REITs up 0.9 per cent.
Commenting on the results, Chant West director, Warren Chant said the flat return in July had come as no surprise.
“While the economic outlook is looking much better than it did this time last year, investment markets have had a surprisingly good run and were set for a pause,” he said.
“We said a year ago that many asset sectors were close to being fully valued, and after a further run-up in prices it’s even harder now to identify undervalued assets that will deliver solid real returns. That’s going to be a serious challenge for super funds.”
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
