Figures released by research house Chant West have shown the performance of superannuation funds dipped in November on the back of negative movements in both domestic and international share markets.
The Chant West numbers revealed the median return from the growth option of superannuation funds was 0.2 per cent lower in November as compared to the previous month.
But while November’s performance results were disappointing this median return has reflected an overall improvement of 5.6 per cent since 1 July this year.
“The typical growth fund has about 30 per cent of its assets in Australian shares and another 25 per cent in international shares. Most of those markets pulled back in November on renewed concerns about European debt and China’s latest move to kerb inflation, so growth fund performance turned negative as well,” Chant West director Warren Chant said.
Chant West has seen stronger market performance in December and has predicted it will continue at least into the first half of 2011.
“The bullish sentiment has returned in the past few weeks, however, and in December to date we’ve seen domestic and international share markets perform particularly strongly. At this rate, a growth fund return in the order of 7 per cent looks likely for the December half year, which would be a strong result,” Chant said.
Industry funds fared better than their retail counterparts in the month of November due to their lower exposure to listed equities.
This result was replicated in the longer-term with industry funds delivering a return of 5.8 per cent for the 10 year period ending in November 2010 compared to a return produced by retail master trusts of 4.5 per cent or the same period.
