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Super returns on target for double digit 2013-14

4 June 2014 - Immediate release

Super fund returns dampened slightly during April 2014 but are still on track for double digit returns for 2013-14.

This would make it five from five for positive returns years since the GFC with funds generating average cumulative returns since then of more than 50%.

Pointing to the strong results is the April 2014 SelectingSuper rolling 12 month Workplace default fund index that returned 11.1% albeit it's down from 12.6% at end March which was down slightly from 12.8% at the end of February.

Three year super fund average annual returns are 8.3% pa, five year average annual returns are 9.2% pa and 10 year average annual returns are 6.9% pa which is more than twice inflation even after allowing for all fees and taxes.

Not-for-profit super funds achieved 12 month returns of 11.6% and retail funds (ie corporate master trusts) achieved 9.2% for a segment gap that has jumped in just one month from 1.4 to 2.4 percentage points. The long term segment gap has also expanded significantly from close to zero to 1.0 percentage points over both five and 10 years.

Underpinning the super fund performance results are that the rolling 12 month ASX accumulation index was 11% which was down from the 13% at end March. International shares performed even better delivering three time more with a 31% return for the 12 months to end April even though this was down from 35% at end March.

These strong returns in the equities asset class and this sector making up half the average super fund asset allocation is what is holding up fund returns so impressively. Funds with higher than average weightings to these sectors, especially international equities, should be expected to be performing even better.

Domestic and international bonds meanwhile returned 2.7% and 3.3% respectively and cash returned 2.7%. Direct property and A-REITs maintained their respective 9% and 3% results.

The best performing Workplace, Personal and Retirement funds are detailed in the following table.

TABLE:   5 best performing Workplace funds, 12 months to end April 2014
 
Workplace    Personal   Retirement  
REST 14.2%  HOSTPLUS 14.3%  REST 15.4%
Telstra Super 13.4%  REST 14.2%  HOSTPLUS 15.1%
HOSTPLUS 13.3%  Telstra Super 13.4%  Telstra Super 14.9%
Intrust 13.3%  Intrust 13.3%  Vision Super 14.5%
CBUS 13.2%  First State Super 13.1%  Rio Tinto Super 14.4%
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When comparing super funds and considering what is right for you, look for funds displaying the AAA Quality Assessment and Rainmaker SelectingSuper Award logos.

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