Weak May and June crimp super returns
Superannuation fund returns look likely to end the financial year in the high single digits, despite faltering in May, according to Chant West.
Chant West director Warren Chant (pictured) said that while the median growth fund return had retreated 0.2 per cent during May, the return for the financial year to date was 10 per cent.
Chant warned, however, that the data for June suggested that super fund members might have to settle for high single digit returns.
“This is still a pleasing result and can be viewed as a year of consolidation on the back of last year’s 10.4 per cent return,” he said.
“West estimate the return to the end of June will be about 8 per cent after investment fees and tax, which is above the long-term expected return of about 7 per cent a year for growth funds,” Chant said.
AUTHOR
Mike Taylor
Recommended for you
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
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.
