2017/18 was an “excellent” year for superannuation fund investment returns, with the ‘median growth fund’ up a “very healthy” 9.2%, according to firm Chant West.
These returns took super funds to a ninth consecutive year of positive returns – equalling the record – and was well ahead of performance targets.
“Growth funds have now delivered nine consecutive positive financial year returns, averaging about 9% a year,” said Chant West senior investment manager Mano Mohankumar.
“The only other time we’ve seen such a long sequence of positive returns was from 1992/93 to 2000/01. This year’s 9.2% is better than most experts, including ourselves, expected a year ago. It’s also well ahead of the typical long-term return objective for the growth category which is CPI + 3.5%. With inflation running at about 2%, that translates to a target of about 5.5%.”