New figures from the research house found 2014 was a good year for super fund members, with the median growth fund returning a “healthy” 8.5 per cent.
“The top-performing fund for the year was QSuper Balanced, which returned 12.7 per cent. Even the worst-performing growth fund delivered a respectable 6.5 per cent,” a statement from Chant West said.
Chant West director Warren Chant said the results for 2014 were good considering the conditions of the global economic environment.
“While the 2014 median return didn’t make it into double-digits like the previous two years (12.8 per cent in 2012 and 17.2 per cent in 2013), members should still be pleased with this result especially as it was achieved in the face of a patchy global economic environment.
“Eight and a half per cent is comfortably ahead of the typical longer-term target return,” Mr Chant said.
Mr Chant also said while funds have experienced three consecutive positive calendar year returns – averaging approximately 13 per cent – it is important for members to “not get too carried away” with expecting high growth.
“Superannuation is a long-term investment. There will be good times and bad times, and you certainly shouldn’t treat double-digit returns as normal,” Mr Chant said.
“The typical return objective for a growth fund is to beat inflation over rolling five-year periods by three per cent to four per cent per annum.
“When we look back over the 22 [and a half] year period, we find that the annualised return was 8.1 per cent and the annual CPI increase was 2.6 per cent, so the real return above inflation has averaged 5.5 per cent per annum.
“That means the return objective has been well and truly met.”
