Super returns flat in January

Super returns flat in January

The first month of 2017 saw relatively flat superannuation returns, with median growth fund returns down 0.1 per cent, according to Chant West.


Mixed results for the listed shares market contributed to the flat returns, the company said, with Australian shares declining 0.8 per cent, and international shares’ 1.3 per cent hedged growth equating to a 2.4 per cent loss in unhedged terms.

“The flat result in January doesn’t come as a great surprise after the unexpectedly strong showing in 2016,” said Chant West director Warren Chant.

“The median growth fund return of 7.5 per cent for 2016 was nearly 6 per cent above inflation – That’s well above the typical long-term objective of inflation plus 3.5 per cent, and much better than what most asset managers expected.”

Mr West said political uncertainty caused by pending elections in the Netherlands, Germany and France, coupled with continued ambiguity around US policy positions would continue to weigh on markets.

“Closer to home, there were indications that China’s economic growth is stabilising, however Trump’s protectionist policies, if enacted, have the potential to set off a trade war that could be damaging,” he said.

Back in Australia, the RBA kept interest rates on hold earlier this month citing an improvement in the global economy and a pick-up in business and consumer confidence, however a further rate cut this year remains a live possibility as GDP growth remains constrained.”

Read more:

ASX targets ‘late 2017’ for blockchain decision

Australian dividends down to 2010 levels

ANZ reports $2bn quarterly profit

TCorp names new funding executive

Former QLD premier appointed ABA CEO

Related Articles

 

Super returns flat in January
investordaily image
ID logo
promoted stories

Appointments

David Cullen

AMP appoints new group general counsel

Reporter

Matt Brown

Australian Unity hires former ANZ Wealth exec

Reporter

Deanne Stewart

First State Super announces new CEO

Reporter

Analysis

investordaily image

Corporate governance and advocacy in China

Therese Niklasson

Dug Higgins

The shifting LIC landscape

Dug Higgins

investordaily image

The perils of chasing niche infrastructure

Frithjof van Zyp