Comprising both small and mega super funds, these 10 growth funds have managed to deliver returns over 7.5 per cent per annum consistently for the last decade, according to Chant West.
Hostplus was the top performing super fund of 2021 in a positive year for the industry overall. The median growth super fund ended 2021 with returns of 13. 4 per cent according to new data released b
Top super funds target growth as best antidote to pandemic setbacks
âRemarkably resilientâ funds that outperformed in the 2020 calendar year are aggressively seeking new opportunities as the economy continues to improve.
Over February and March last year the median growth fund plummeted 12 per cent. Markets then rallied and growth funds surged 15.5 per cent over the remaining nine months of the year.Â
Simon Letch
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Leading super fund managers are repositioning for recovery as economic conditions continue to improve and opportunities appear in sectors yet to recover from COVID-19 setbacks, such as airports, toll roads and shopping centres.
Growth funds produced âremarkably resilientâ returns in calendar 2020 despite unprecedented market volatility, investor fears and economic setbacks after the start of the pandemic.
SuperRatings executive director, Kirby Rappell, said: “What the calendar year figures hide is the rollercoaster movements members experienced as the market sold off back in March 2020 and then rapidly recovered.
“As members accumulate wealth over time, market movements will have a bigger impact on their account balance in dollar terms. This is a challenge for funds and members as the average super balance rises over $100,000, with the need for education and support paramount.
“Overall, funds have done an excellent job of managing risks through a tumultuous period.
“Super is a long-term game, so it’s pleasing to see long-term returns remain healthy and ahead of their CPI+ targets.”
Superannuation funds snap back after testing year
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Superannuation funds produced an average return of 3.7 per cent last year – a much better result than expected after investment markets were savaged by the economic shock of COVID-19.
Mano Mohankumar, senior investment research manager at Chant West, says: “If we take ourselves back to late March, the prospect of finishing the year up 3.7 per cent would’ve been inconceivable.
The Australian sharemarket plunged almost 40 per cent before recovering most of those losses.
Credit:Mark Evans Back then, the world was in chaos, facing a frightening health crisis which saw most countries introduce some form of lockdown. Whole industries ground to a halt, countless jobs were lost and the global economy was heading rapidly into recession.