Super funds started the new financial year on a positive note, with the median growth fund (61 to 80% growth assets) delivering 1.2% for the month of July. This is on the back of a strong 2013/14 financial year return of 12.8%, which was the fifth consecutive positive year.
Please see the attached media release for further information. Key highlights include:
– All five of our five risk categories, ranging from Conservative to All Growth, are now comfortably ahead of their pre-GFC highs achieved in October 2007. Growth funds, which have returned 72% since the low point in February 2009, now sit 27% above that October 2007 high.
– The typical long-term return objective of growth funds is to beat inflation by 3 to 4% per annum which translates to about 6 to 7%. Funds are delivering on this promise. Over the past 15 years, growth funds have returned 6.4% per annum. If we go back even further to the introduction of compulsory super in July 1992, growth fund have returned a healthy 8.1% per annum.
– Retail funds edged out industry funds in July, returning 1.4% against 1.2%.
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