Super funds edge closer to another positive year

After a disappointing start to the year, super funds have posted a second consecutive positive month and are edging closer to a positive financial year result.  Following a rise of 1.8% in March, the median growth fund (61 to 80% allocation to growth assets) gained another 1.4% in April.  That takes the return over the ten months of the financial year to date to 1.7%.

Key highlights include:

– We estimate that the median growth fund is up a little over 1% so far in May, so with only six weeks remaining we’re now sitting at about 3% for the financial year to date.  That means it’s slightly better than an even money bet that we’ll see a seventh consecutive positive year.

– It’s pretty certain we’re not going to see a result as strong as the previous three years (15.6% in 2012/13, 12.8% in in 2013/14 and 9.8% in 2014/15), but members shouldn’t be too disappointed with anything in positive territory.

– Industry funds and retail funds performed broadly in line with each other in April, returning 1.5% and 1.4% respectively.

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Source: Chant West

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Super funds must adhere to governance standards they demand of others

Super funds must adhere to governance standards they demand of others

Director tenure limits are embedded in governance codes across every major capital market. As Australian superannuation funds become retirement institutions, they should be held to the same standards that they expect of the companies they invest in.

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