The median growth fund recorded a 3.1 per cent gain throughout the quarter, which the firm noted was supported by strength in the listed shares markets, though Chant West director Warren Chant noted monthly performance was irregular.
“This was a solid quarter overall but the performance was far from consistent - of the 3.1 per cent gain, 2.7 per cent was achieved in July,” he said.
“Since then we’ve had two months of fairly flat returns, and that’s mainly because investors are preoccupied about US interest rates and when the next rate hike will be.”
Mr Chant said the current “nervous mood” was likely to continue given investor uncertainty around the outcome of the US election and global interest rates, and a lack of clarity on the medium to long term implications of the UK’s Brexit vote.
“Closer to home, there remains concern over the pace of growth of the Chinese economy where further monetary easing is expected,” he added.
“Meanwhile, back in Australia, the RBA kept interest rates on hold at 1.5 per cent, with a further cut this year remaining a possibility.”
Industry superannuation funds outperformed their retail peers in the quarter, returning 3.2 per cent to retail’s 2.9 per cent throughout the September quarter and 5.8 per cent to retail’s 5.1 per cent over the ten years to September 2016, Mr Chant said.
Former CommSec COO joins fintech company as CEO
Boutique manager hires Perennial executive
Equip Super appoints strategy and markets executive
A correction, not a turning point
Why bond covenants matter
Striking a balance between security and innovation