CFS, AMP join industry funds in performance top 10 | Australian Markets

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Industry superannuation funds needed to share the investment performance limelight with retail funds in the wash-up from the previous financial yr, in line with the latest evaluation from Chant West.

Chant West’s evaluation of the Top 10 Performing Growth Funds for final financial yr noticed the top 5 rankings shared between so-called revenue to member funds and distinct retail choices.

The consequence was that Legalsuper MySuper Balanced topped the desk, adopted by Vanguard Super SaveSmart Growth, CFS First Choice Growth and the Australian Retirement Trust Balanced.

The hooked up desk generated by Chant West additionally reveals AMP Future Directions Balanced in the top 10.

However, over a 10-year period, the image is totally dominated by industry funds.

Chant West’s evaluation of the 12-month period mentioned that regardless of trade tensions and considerations in the Middle East, superannuation funds “post another tremendous financial year result with the median growth fund 61 to 80% in growth assets) returning 10.5%”.

Chant West senior investment analysis supervisor, Mano Mohankumar mentioned the consequence was again led by resilient share markets however was additionally helped by main asset courses.

“International shares and Australian shares, which have average weightings of about 31% and 24% respectively within a typical growth portfolio, both returned 13.7%,” he mentioned.

“Foreign currency was also a meaningful contributor due to the depreciation of the Australian dollar, with the international shares return of 13.7% (reflected in hedged terms) translating to 18.6% in unhedged terms.”.

“We’re nonetheless accumulating remaining returns for unlisted asset courses reminiscent of unlisted property, unlisted infrastructure and personal equity. Infrastructure, which now makes up virtually 10% of a typical growth option, was additionally a key contributor over the yr, with returns in the low double digits.

“We estimate that personal equity completed with beneficial properties in the 8% to 11% vary and count on unlisted property, which was in the purple in every of the 2 earlier years, to complete with a optimistic return in the two% to five% vary.

“Listed real assets were also up over the year, with international listed infrastructure returning an impressive 16.3%, while Australian listed property and international listed property posted gains of 13.7% and 8.4%, respectively. Among the traditional defensive asset classes, Australian bonds and international bonds had their best year since FY19, advancing 6.8% and 5.4%, respectively, and cash posted a return of 4.4%.”