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Home News

Growth funds up 18 per cent in 2013: Morningstar

The median growth superannuation fund generated an average return of 18 per cent over 2013, according to Morningstar.

by Staff Writer
January 20, 2014
in News
Reading Time: 2 mins read
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Results of the Morningstar Australian Superannuation Survey show the first quarter on average produced a strong 4.7 per cent return while the September quarter generated a 5.1 per cent return, the highest result of the 12-month period. 

The lowest quarterly result was recorded in the June period, which had a 2.3 per cent return. 

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The survey results covered both commercial and industry superannuation options. 

In terms of monthly results, only two negative medians were recorded over 2013: in March at -0.3 per cent and June at -0.8 per cent. 

The highest median result for the year was 1.8 per cent.

Longer-term annualised returns were on average recorded at 9.2 per cent for three years, 9.6 per cent for five years, and 7 per cent for the 10 years ended on 31 December 2013.  

The research indicates the best-performing growth superfund over the 2013 calendar year was the Legg Mason Growth fund, with a 26.9 per cent return, followed by Legg Mason Balanced at 23.3 per cent and Invesco Diversified Growth at 22 per cent. 

Legg Mason Growth also produced the highest annual result for five years, with a return of 12.4 per cent, followed by Legg Mason Balanced at 12.1 per cent and Schroders at 11.5 per cent. 

Among the balanced options (40 to 60 per cent growth assets) the strongest performers for 2013 were BT Balanced, with a 15.2 per cent result, State Super Balanced at 14.6 per cent and REST Super Balanced at 14.4 per cent. 

Of growth assets, international shares provided the strongest performances over the year, with a growth of 48 per cent. 

Australian shares also performed well, with a growth of 19.7 per cent. 

Australian listed property produced a 7.1 per cent return, while global listed property recorded a return of 5.8 per cent. 

The December results showed Australian shares had risen by 0.8 per cent and international shares had risen 4.4 per cent. 

Australian listed property experienced a decline of 1.3 per cent in December while international listed property increased 0.2 per cent. 

The survey showed the average allocation to equities at 30 November 2013 was 57.3 per cent, with 30.5 per cent allocated to Australian equities and 26.8 per cent in global equities. 

The average exposure to property was 8.7 per cent. 

On average, 26.1 per cent of funds were allocated to defensive assets including domestic fixed interest at 10.4 per cent, international fixed interest at 6.4 per cent and cash at 9.3 per cent. 

Legg Mason Growth had the highest allocation to Australian shares at 51.6 per cent, followed by Legg Mason Balanced at 45.8 per cent and Equip Balanced Growth at 45 per cent. 

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