Super funds were up in May, with the median growth fund (61 to 80% growth assets) gaining 1% for the month. It is now almost certain that they’ll deliver a sixth consecutive positive financial year, with the return over the eleven months of the year to date standing at 11.9%.
Key highlights include:
- Even factoring in the share market losses over the first half of June, it’s still quite possible that the median growth fund will finish the financial year in double digit territory for the third year in succession.
- With only two weeks of the financial year remaining, we estimate that growth funds are up 10% with returns in this category likely to range between 7% and 14%.
- In fact, since the end of the last negative financial year in 2008/09, growth funds have delivered an impressive 74% which translates to an average annual return of nearly 10%. To put this in perspective, the typical longer-term return objective of growth funds is to outperform inflation by between 3% and 4% per annum which works out to be about 6% to 7%.
- Industry funds and retail funds performed in line with each other in the month of May with a return of 1%.
Source: Chant West
