Shares drive super funds to eighth consecutive year of investment gains

Superannuation funds have had an eighth consecutive year of positive investment returns, driven in large part by share markets, according to Chant West.

The ‘median growth fund’ – with 61-80% in growth assets – was up 10.7% in 2016/17, according to the firm.

“Shares are still the main drivers of performance, but the major funds are well diversified across other asset sectors as well,” said Chant West director Warren Chant.

“The better performing funds over the year were those that had higher allocations to listed shares and to unlisted assets generally. It also helped to have a lower exposure to listed property, bonds and cash,” he said. Read more...

Super funds poised for eighth year of positive investment returns

Superannuation funds are set to record an eighth consecutive year of positive investment returns, according to Chant West.

Super funds are also up 110% since the end of the Global Financial Crisis (GFC).

Early estimates for the 2016/17 financial year show the ‘median growth fund’ up a “very healthy” 10.5%.

“Against all the odds, Australia’s major super funds will post a double digit return for the 2017 financial year and complete an unbroken eight years of positive performance,” said Chant West director Warren Chant. Read more...

Double digit super fund returns possible for 2016/17: Chant West

Double digit superannuation fund investment returns are a “live possibility” for the 2016/17 financial year, according to Chant West.

The firm says that super funds had another positive month of returns in April, with the median growth fund (61-80% growth assets) up 1.5%.

This is the eighth month of positive returns out of the ten so far in this financial year. The cumulative returns for the median growth fund in 2016/17 currently stands at 10.1%.

“Growth funds have performed better than expected over the first ten months of the 2017 financial year,” said Chant West director Warren Chant. Read more...

Returns from growth funds better than expected so far for 2016/17

Superannuation funds had “solid” investment returns in the March 2017 quarter, contributing to better than expected returns for growth funds so far in the  2016/17 financial year, according to Chant West.

The median growth fund – with 61-80% in growth assets – was up 2.5% for the quarter, and up 9.5% for the first nine months of 2016/17.

Chant West says this was driven mainly by gains from equities. Australians shares were up 4.7% in the quarter. International shares were up 5.4% in hedged terms, but only up 0.9% in hedged terms due to appreciation in the Australian dollar. Read more...

Good chance of 8th consecutive year of positive super fund returns, says Chant West

There is a good chance super funds will see an 8th consecutive year of positive investment returns.

After a flat January, superannuation fund investment returns were better in February 2017, up 1.2% for the median growth fund, says Chant West.

“This brings the return over the first eight months of the 2017 financial year to a healthy 6.8%.”

According to the firm all major asset sectors recorded positive returns in February 2017, led by listed shares and property. Australian shares were up 2.2%. International shares were up 3.1% in hedged terms, but only up 1.5% in unhedged terms due to appreciation in the Australian Dollar. Read more...

Best super fund advice services category added to Chant West awards

Chant West has added ‘Best Fund: Advice Services’ to the other ten award categories for its fifth annual awards, to be held on May 24 in Sydney.

“This year we’ve introduced a new award category, which is Best Fund: Advice Services, and there’s a good reason for that. Increasingly, it’s the advice that members receive that enables them to get the greatest value from their fund – especially as they approach retirement,” said Chant West director, Warren Chant.

“Timely advice, delivered in a way that they can relate to, helps people make good decisions and take appropriate actions at critical stages in their working lives,” he said. Read more...

Super fund returns “take a breather” in January 2017, says Chant West

Superannuation fund investment returns have taken a ‘breather’ after a strong finish to 2016, says Chant West.

“After a strong finish to 2016, super funds were relatively flat in January with the median growth fund (61 to 80% growth assets) down 0.1%. Nevertheless, the return over the seven months of the financial year to date remains healthy at 5.6%.”

Chant West says that listed shares are the main drivers of returns for growth funds, but performance of that asset class was mixed in January. Australian shares were down 0.8% and international shares up 1.3%, but down 2.4% after accounting, in unhedged terms, for the appreciation of the Australian dollar. Read more...

Fifth consecutive year of positive investment returns for super funds

Superannuation funds have recorded their fifth consecutive calendar year of positive investment returns, according to Chant West.

Super fund investments delivered a “health return” for the 2016 calendar year, assisted by a “late surge”.

Chant West calculated that the median growth fund, with 61-80% in growth assets, returned 7.7% in 2016. Investment returns for individual growth funds ranged from 4.2% to 10.1%.

“Members should be very pleased with the 2016 result, which was achieved against a backdrop of unsettled global politics and a relatively weak economic environment,” said Chant West director Warren Chant. Read more...

Super funds likely headed for positive 2016, helped by ‘Trump effect’

Super funds are likely to have a fifth consecutive calendar year of positive investment returns, helped by the ‘Trump effect’, says Chant West.

The median growth fund, with 61-80% invested in growth assets, gained 1.1% in November according to the firm. This means a cumulative 5% return for the first 11 months of 2016 and a currently estimated 6.3% for the year to date.

“With less than two weeks of the year remaining, it’s almost certain the median growth fund will deliver another positive return to follow up the 12.8% recorded in 2012, 17.2% in 2013, 8.5% in 2014 and 5.7% in 2015,” said Chant West director, Warren Chant. Read more...

A “solid” start to financial year, but markets still nervous

Chant West, superannuation fund investment returns, September quarter 2016/17Financial year 2016/17 has started with a “solid” quarter, but markets are nervous ahead of events in the US, according to Chant West.

The firm said that the median growth fund returned 3.1% over the September quarter. Australian shares were up 5.2% and international shares were up 4.8% on an hedged basis, but only 2% unhedged due to a stronger Australian dollar. Listed property was “mixed”, with Australian REITs down 1.9% while global REITs were up 1.3% for the quarter.

“This was a solid quarter overall but the performance was far from consistent,” said Chant West director, Warren Chant. Read more...