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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Tax changes will make property disproportionally popular with SMSFs: FAAA

Tax changes will make property disproportionally popular with SMSFs: FAAA

CGT changes proposed in this year’s budget could lead to more high-pressure sales tactics that push people into SMSFs, according to the Financial Advice Association Australia. While the association welcomes superannuation being exempted from any changes, it could mean property in SMSFs becomes disproportionately attractive.

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