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.
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
