After exceptional returns of 12.8 per cent in 2012 and 17.2 per cent in 2013, super funds look set to deliver a more modest result in 2014. Following a 0.8 per cent gain in November, the median growth fund (61 to 80 per cent growth assets) had notched up a total return of 7.1 per cent for the first 11 months of the year. While the first half of December has been negative, the median return still stands at an estimated 6 per cent.
Please see the full media release for further information. Key highlights include:
– It’s almost certain that we’ll see a positive return for the 2014 calendar year – most likely in the range of 5 to 8 per cent barring anything exceptional occurring. This would be broadly in line with the typical growth fund return objective of about 3 per cent to 4 per cent per annum above inflation.
– As we approach 2015, most of the debate among investment experts is centred on interest rates and economic growth prospects and the story varies from region to region.
– Retail funds and industry funds performed in line with each other in November, returning 0.8 per cent.
