Chant West: Super fund performance to January 2015

Super funds have powered into 2015, with the median growth fund (61 to 80% growth assets) gaining 2% in January.  This is on the back of the healthy 8.5% return in 2014.  Over the seven months of the financial year to date, growth funds are now up 7.2%.

Please see the media release for further information.  Key highlights include:

• Most investment commentators are predicting a more modest return for the year ahead after the 8.5% delivered in 2014.  Investors themselves are proving more optimistic, however.  Share markets have continued rising, and we estimate that the median growth fund is up another 2.5% over the month of February to date.  That’s on top of January’s 2%, so 4.5% over the first month and a half of the year.
• However, it’s early days yet and members shouldn’t get carried away with their expectations, especially as the global economic backdrop remains so patchy.
• Retail funds, with their higher exposure to listed property, outperformed industry funds in January, returning 2.2% versus 1.8%.