Although the 3.7 return is sizeably smaller than 2019’s 14.7 per cent result, the data from Chant West has shown super funds have managed their ninth consecutive positive calendar year, the 11th in 12 years.
The average high growth fund (81-95 per cent growth assets) gave the same result of 3.7 per cent for the year, while all growth (96-100 per cent growth assets) returned 4.1 per cent.
Balanced options (41-60 per cent growth assets) on average gave a 3 per cent return, ahead of the conservative (21-40 per cent growth assets), with its 2.4 per cent return.
Suncorp topped the growth funds for the year, with its Multi-Manager Growth option giving a 9.6 per cent return for the 12 months. Australian Ethical’s Super Balance followed, returning 8.3 per cent, along with Vision Super’s Balanced Growth (6.2 per cent).
In terms of performance during the past decade, AustralianSuper and UniSuper tied in the top spot with a ten-year return of 9 per cent per annum.
Cbus Growth (Cbus MySuper) followed with 8.9 per cent, ahead of Hostplus (8.8 per cent).
Chant West senior investment research manager Mano Mohankumar commented 2020 had shown the importance of diversification.
“The better performing funds over the full year were generally those that had a higher allocation to international shares, particularly those with a growth style bias,” Mr Mohankumar said.
“Holding bonds rather than cash would also have helped, as would a relatively low exposure to listed infrastructure and listed property.”
He added the prospect of finishing the year up 3.7 per cent would have been “inconceivable” in March.
“Over February and March, major share markets took a beating and the median growth fund plummeted 12 per cent,” Mr Mohankumar said.
“Markets rallied from that point, however, and growth funds rode the rally to surge 15.5 per cent over the remaining nine months of the year.”
