The median growth superannuation fund (61% to 80% growth assets) returned 2% during the September quarter, and have mostly recovered the 12% loss experienced in February and March due to the market sell-off induced by COVID-19, according to Chant West.
The latest Chant West data found the September quarter performance was mainly driven by international shares which were up 6.9% in hedged terms, and up 3.8% in unhedged terms. Australian shares were flat with a loss of 0.1%.
Chant West senior investment research manager, Mano Mohankumar, said: “Share markets wobbled a little in September after rallying strongly for the previous five months. But again, we saw the value of diversification come to the fore – just as we did during the market crisis in February and March.
“Australian and hedged international shares were down 3.6% and 2.9% respectively for the month, but by having exposure to a wide range of growth and defensive asset sectors the median growth fund was able to contain the loss to just 0.6%.”
The research house also found that the median growth fund was up 11.5% since the end of March and had “now erased most of the 12% loss experienced back in February and March”.
“That’s despite the uncertain global economic and political backdrop. The global economy is in recession but we don’t know what pattern the downturn and eventual recovery will take. Trade tensions with China keep simmering in the background but, more immediately, all eyes will be on the upcoming US election which is only two weeks away,” Mohankumar said.