After averaging 12.7% per annum over the past three years, super funds look set to deliver a fourth consecutive positive calendar year return – but a much smaller one this year. Following a loss of 0.3% in November, the median growth fund (61 to 80% growth assets) was up 5.7% for the first 11 months of 2015. And while the first half of December has been negative, the median return for the year still stands at an estimated 5%.
Key highlights include:
. While this year’s median growth fund return won’t reach the heights of the past three years (12.8% in 2012, 17.2% in 2013 and 8.5% in 2014), it would still represent the sixth positive return in the past seven years and the eleventh in the past thirteen.
. A more subdued return this year isn’t really a surprise. For some time, asset managers have been commenting that we’re heading into a lower return / higher volatility environment.
. Key themes that have affected global investment markets in 2015 include uncertainty over the timing of the US Federal Reserve’s long-awaited first interest rate hike, slowing economic growth in China, falling commodity prices and monetary easing in Europe, Japan and China in response to concerns over deflation.
. Industry funds outperformed retail funds in November with a return of -0.2% versus -0.5%.
Leave a Comment
You must be logged in to post a comment.