Super funds making hay
Median growth funds gained about 3 per cent in July, research firms Chant West and SuperRatings said. The growth reversed declines of 0.6 per cent in June.
Global sharemarkets were the strongest growth drivers for the month, with the median Australian shares option delivering 4.8 per cent compared to a rise of 5.2 per cent on the ASX200 Accumulation Index, SuperRatings reported.
The falling Australian dollar boosted returns from international equities, while all other asset classes also strengthened in July.
"July's one-month return for the median balanced option is an exceptional result, especially coming on the back of last financial year's 14.7 per cent gain, the highest since the [financial crisis]," SuperRatings' founder Jeff Bresnahan said.
Chant West director Warren Chant said although the median growth fund was more than 14 per cent higher compared with its pre-financial crisis peaks, Australian shares were still 4.6 per cent behind their October 2007 levels.
"This is an important reminder that the typical growth fund is not just dependent on shares for performance," Mr Chant said.
Frequently Asked Questions about this Article…
Superannuation funds built on last financial year gains in July, with research from Chant West and SuperRatings showing the median growth fund returned about 3% for the month, reversing a 0.6% decline in June.
Global sharemarkets were the strongest growth driver in July, while a weakening Australian dollar boosted returns from international equities and all other asset classes also strengthened.
SuperRatings reported the median Australian shares option delivered a 4.8% gain in July compared with a 5.2% rise on the ASX200 Accumulation Index.
Yes — the falling Australian dollar helped lift returns from international equities held by superannuation funds, contributing to stronger overall monthly results.
Yes — SuperRatings’ founder Jeff Bresnahan described the one‑month return for the median balanced option as an exceptional result, coming after a 14.7% gain over the last financial year, the highest since the financial crisis.
Chant West’s director Warren Chant said the median growth fund is more than 14% higher than its pre‑financial crisis peaks, although Australian shares as an asset class remain about 4.6% below their October 2007 levels.
The July gains show diversified exposure across global shares and other asset classes can lift fund returns, reinforcing that a typical growth fund’s performance isn’t solely dependent on Australian shares.
The July results and commentary were reported by research firms Chant West and SuperRatings, including comments from SuperRatings founder Jeff Bresnahan and Chant West director Warren Chant.
Call 1300 880 160
Start a chat
Schedule a call
