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Home News Superannuation

Aggressive super fund strategies to fare best in 2013

by Staff Writer
July 2, 2013
in News, Superannuation
Reading Time: 2 mins read
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Early estimates suggest the average super fund will deliver its second highest financial return in 16 years.

Chant West said early reports suggested the median growth fund, which the majority of members are invested in, would return 15.5 per cent, with a range of between 10.5 per cent and 18 per cent.

X

Chant West director Warren Chant said funds with more aggressive strategies and high exposures to listed shares and property and which had positioned themselves to benefit from a low Australian dollar, fared better than conservative strategies.

Australian shares increased by 21.9 per cent over the year, while international shares rose 21.3 per cent in hedged terms and 33.1 per cent when a low Australian dollar was factored in.

Australian and global REITs were up 24 per cent and 17.2 per cent respectively, while unlisted and defensive sector assets were expected to deliver positive but more modest returns.

Chant said he hoped the results showed the importance of maintaining investment strategy through a market downfall.

"The median growth fund has now put on 50 per cent since its low points at the end of February 2009," he said.

"This year's result will be the fourth consecutive positive financial year return, following on from 10.4 per cent in 2009/10, 9.2 per cent in 2010/11, and 0.5 per cent in 2011/12.

"The cumulative return over that period works out to 40 per cent.

"That translates to 8.8 per cent per annum, which is well above the typical growth fund objective of 6.5 – 7 per cent per annum."

Chant said that share markets rallied strongly from the eight months from July, pausing in March and picking up again in April and the beginning of May.

The withdrawal of monetary stimulus was be the biggest deciding factor in market performance going forward, he said.

Tags: CentDirectorSuper Fund

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