Growth super options, which have a 61-80 per cent allocation to growth assets and are often used as default funds, had a “stellar” year in 2017, says Chant West director Warren Chant.
“Growth funds have now delivered six straight positive calendar year returns, averaging over 10 per cent a year,” Mr Chant said.
The last time growth funds underwent such a long sequence of positive returns was between 1995 and 2001, in the run-up to the tech bubble.
“The 2017 return of 10.8 per cent is the best result since 2013 when funds surged 17.2 per cent. It is also more than 5 per cent ahead of the typical long-term return objective for that category, which is CPI + 3.5 per cent,” Mr Chant said.
The result for 2017 is particularly impressive given the nervousness or forecasters in the aftermath of the surprise Brexit vote and Donald Trump’s election as US President, he said.
“However, despite all the uncertainty, share markets around the world took it in their stride as investors focused on the improving global economy. International shares surged 18.7 per cent over the year in hedged terms and 13.4 per cent unhedged, while Australian shares also had an excellent year, gaining 11.9 per cent,” Mr Chant said.
According to Chant West, AustralianSuper Balanced was the top performing growth fund throughout 2017 with a return of 13.6 per cent.
AustSafe Super (Balanced) was second at 13.5 per cent, followed by Hostplus Balanced (13.4 per cent).
The top five was rounded out by Club Plus MySuper Balanced (12.9 per cent) and Intrust Balanced (12.8 per cent).
