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Super funds post strong Q1 returns

Super funds post strong Q1 returns

Taylee Lewis
— 1 minute read

The median super fund option had a strong March 2015 quarter, returning 5.8 per cent, says Chant West.

The rebound in oil prices and the likelihood of a delay in a US interest rate hike contributed to the global share market’s strong performance over the March quarter, Chant West said.

Chant West director Warren Chant said: “Markets have proven to be more optimistic, even in the face of a patchy global economic backdrop.”

“Growth assets – and especially high-yielding growth assets – have proved most attractive to investors,” he said.

Australian shares increased 10.3 per cent in March, while international shares advanced 4.7 per cent.

Retail funds outperformed industry funds in the quarter, with a return of 6.1 per cent versus 5.6 per cent, a Chant West-issued statement said.

Mr Chant said it is likely that Australians will experience a double-digit earnings result for 2015.

Superannuation research house SuperRatings confirmed Chant West’s positive outlook.

SuperRatings founder Jeff Bresnahan said: “Funds are well positioned to provide members with another year of solid returns.”

The return for the financial year to date now stands at 10.8 per cent, a statement issued by SuperRatings said.

“Because most super funds have a large exposure to equities, the performance of Australian shares is a key driver of returns,” the statement said.

SuperRatings also found that the Australian Listed Property market is providing substantial returns – 9.2 per cent in the three months to March.

Moreover, those who are in pension phase are looking at year-to-date returns of 11.9 per cent and a quarterly gain of 6.3 per cent.

“While the strong performance during the year to date is good news, importantly, it is also pleasing that returns during the past five- and 10-year periods are above the industry benchmark target of inflation plus three per cent (CPI+3),” Mr Bresnahan concluded. 

 

Super funds post strong Q1 returns
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