Superannuation returns hit a six-year high in 2019, but investors warn of a 2020 slowdown

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Super funds put in an outstanding performance in 2019, with the median growth fund up 14.7%.

Figures from SuperRatings show the median, or typical, balanced fund produced a slightly lower return of 13.8 per cent last year, but that was still the best in six years.

The 2019 result brings the average return over the past 10 years to 7.9% per annum

Table 1 compares the median performance for each fund category in Chant West’s Multi-Manager Survey, ranging from All Growth to Conservative. Over every period shown, all risk categories have met their typical long-term return objectives, which range from CPI + 2% for Conservative funds to CPI + 4.75% for All Growth.

Superfunds 2019 01

Typically, a balanced fund has generated on average 6.6% pa over a 10 year period or 6.0% over a 15 year period.

 

Chart 2 shows the top 10 performing growth options over 10 years.

Superfunds 2019 02

A select number of funds have generated slightly higher returns over a 10-year period.

 


Information is taken from ABC News article 16/1/2020 and Chant West report

Full articles are: https://www.abc.net.au/news/2020-01-16/super-returns-in-2019-stellar-but-brace-for-slowdown-in-2020/11871160 and https://www.chantwest.com.au/resources/2019-a-standout-year-for-super-funds published at 22 Jan 2020, 11:30am

 

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