Super funds have posted a third consecutive positive month, with the median growth fund (61 to 80% allocation to growth assets) gaining 2.3% in May. That takes the return for the first eleven months of the financial year to 4.0%, raising the prospect of a small positive annual return come the end of June.
Key highlights include:
While May was an excellent month, we estimate that the median growth fund is down 1.8% in June to date. Nevertheless, with only two weeks remaining we’re still sitting at about 2% for the 2016 financial year, so a small positive return looks the most likely outcome.
If that does occur it will be the seventh consecutive positive year, which is quite remarkable considering the global economic environment has been unsettled for much of that time.
Retail funds outperformed industry funds slightly in May, returning 2.5% versus 2.3%.
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