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Home News

Super fund returns down in January: Morningstar

After generating a record 17.9 per cent annual return over 2013, Australian superannuation funds declined during January with the median growth fund falling 1.1 per cent, according to Morningstar.

by Staff Writer
February 18, 2014
in News
Reading Time: 2 mins read
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The Morningstar Australian Superannuation Survey found the majority of growth superfund returns were negative over the month ranging from a high of 0.1 per cent down to -2.1 per cent. 

The median return for the past 12 months was 12.8 per cent, while the three year return was 8.4 per cent, and the five year return was 9.9 per cent. 

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Legg Mason Growth was the strongest performing fund in the 12 months leading to 31 January 2014 with a return 19 per cent, followed by Legg Mason Balanced with a return of 16.4 per cent and Rest Diversified at 16.1 per cent.  

In terms of five years growth, Legg Mason Growth and Legg Mason Balanced were again the two top funds with returns of 12.8 per cent and 12.6 per cent respectively, followed by Schroders at 11.4 per cent. 

In terms of balanced options (40 to 60 per cent growth assets), the best performers in the 12 months up to 31 January 2014 were Rest Super Balanced at 11.9 per cent, BT Balanced 11.2 per cent and AMP Moderate Growth at 10.6 per cent. 

Global listed property was the strongest performing asset in January with a return of 2.5 per cent, followed by Australian listed property at 0.5 per cent.

Both international and Australian shares were down -1.2 per cent and -3 per cent respectively. 

Despite the decline in international shares in January, global shares continue to have the strongest result of all assets in the past 12 months generating a return of 39.8 per cent. 

This is followed by Australian shares with a 10.6 per cent return in the 12 months leading to 31 January 2014. 

The average allocation to equities at 31 December 2013 was 58.6 per cent with 31.8 per cent in Australian shares and 26.8 per cent in international. 

The average property allocation was 8.1 per cent. 

Defensive assets on average accounted for 25.1 per cent of total assets with 10.7 per cent in domestic fixed interest, 5.6 per cent in international fixed interest and 8.8 per cent in cash. 

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