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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Gap between retirement leaders and laggards has grown: ASIC

Gap between retirement leaders and laggards has grown: ASIC

A year after regulators put super funds on notice about the unacceptable gap between the best and the worst of responses to the Retirement Income Covenant, the situation has become even worse. The Retirement Leaders Summit in Canberra heard that the leading funds treat retirement as a core business, while the laggards still see it as a compliance exercise.

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