Growth super funds post another loss
Renewed weakness in equities markets led to another disappointing month for growth super funds, the seventh negative month in the past nine, according to researcher Chant West.
The researcher’s median return for growth funds, described as those with a 61 to 80 per cent allocation to growth assets, returned a negative 1.1 per cent for the month to July 31.
However, the funds are meeting their longer-term objectives, even accounting for the recent poor performance, according to principal Warren Chant.
“A very common objective for growth funds would be to outperform the CPI by 4 per cent over rolling five-year periods,” Chant said.
“Our (research) table shows this would require a five-year return of 7.3 per cent per annum and the median fund has in fact returned 9.1 per cent per annum.
“So, the typical return objective has been met with a comfortable margin to spare, and the same is true across all our growth fund categories (from All Growth to Conservative Growth),” he said.
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