Double-digit returns despite decline
The average growth fund - the most common super category, with growth assets of about 77 per cent - fell by 0.4 per cent in March, according to Morningstar's 24-fund survey.
Peter Gee, research products manager at Morningstar Australasia, said the 2.2 per cent decline in the S&P/ASX 300 Accumulation Index and 2.7 per cent decline in Australian property securities last month drove down the result, which followed a run of positive returns in early 2013 and throughout 2012.
The average return for the three months to March 31 was 5 per cent for multi-sector growth funds and returns for the financial year to date averaged 14.6 per cent. The year-to-date return was 12.3 per cent.
Alex Dunnin, chief researcher at financial services research group Rainmaker, said returns of between 12 and 14 per cent looked likely for the financial year.
The Legg Mason Growth fund was the strongest performer across three months (up 8.7 per cent), the financial year to date (24.4 per cent) and one year (19.1 per cent).
Over the longer term, REST Core led the pack with its three-year return of 8 per cent, and it had the second best performance for five and 10-year returns, at 5.8 and 8.4 per cent.
Schroders had the strongest five-year return at 6 per cent and 8.6 per cent over 10 years.
Frequently Asked Questions about this Article…
Median super fund returns fell in March — the first monthly decline in nine months — driven mainly by falls in local shares and property securities. Morningstar's 24‑fund survey and Peter Gee pointed to a 2.2% drop in the S&P/ASX 300 Accumulation Index and a 2.7% fall in Australian property securities as the key reasons.
The average growth fund, the most common super category with about 77% growth assets, fell by 0.4% in March according to Morningstar's 24‑fund survey.
For the three months to March 31, multi‑sector growth funds returned an average of 5%.
Yes. The article reports financial‑year‑to‑date averages of roughly double‑digit levels (Morningstar noted 14.6% averaged financial‑year‑to‑date and a year‑to‑date figure of 12.3% was reported), and Rainmaker chief researcher Alex Dunnin said returns of between 12% and 14% looked likely for the financial year.
The Legg Mason Growth fund was the strongest performer across three months (up 8.7%), financial year to date (24.4%), and one year (19.1%).
REST Core led over three years with an 8% return and had the second best five‑ and 10‑year returns (5.8% and 8.4%). Schroders posted the strongest five‑year return at 6% and 8.6% over 10 years.
The figures come from Morningstar's 24‑fund survey. Commentary in the article was provided by Peter Gee, research products manager at Morningstar Australasia, and Alex Dunnin, chief researcher at Rainmaker.
The article suggests a single month's decline does not erase strong recent gains: March saw a small pullback after a run of positive returns in early 2013 and throughout 2012, and average short‑term and year‑to‑date returns remained solid. Experts quoted still expected double‑digit returns for the financial year, indicating the decline was a modest short‑term move rather than a clear trend reversal.
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