Super funds were down in April, with the median growth fund (61 to 80% growth assets) losing 0.4% for the month. However, they remain well on track to deliver a sixth consecutive positive financial year, with the return over the ten months of the year to date standing at a very healthy 10.9%.
Please see the attached media release for further information. Key highlights include:
• Listed share markets had a mixed month. Australian shares gave up some of their recent gains, and retreated 1.6%. International shares were up 1.1% in hedged terms but, due to the appreciation of the Australian dollar over the month, this translated to a loss of 0.8% in unhedged terms.
• In April, we saw the benefits of diversification at play. The typical growth fund has an average allocation of about 50% to Australian shares, unhedged international shares and listed property, and all these sectors delivered negative returns for the month. However, most funds are well diversified across a wide range of other growth and defensive assets including unlisted assets. This helped reduce the impact of market falls and limited the loss to 0.4% for the month.
• Industry funds, with their lower allocation to shares and listed property, outperformed retail funds in April with a return of -0.3% versus
-0.7%.
Source: Chant West
