CFS, AMP join industry funds in performance top 10

Industry superannuation funds had to share the investment performance limelight with retail funds in the wash-up from the past financial year, according to the latest analysis from Chant West.

Chant West’s assessment of the Top 10 Performing Growth Funds for last financial year saw the top five rankings shared between so-called profit to member funds and distinct retail offerings.

The result was that Legalsuper MySuper Balanced topped the table, followed by Vanguard Super SaveSmart Growth, CFS First Choice Growth and the Australian Retirement Trust Balanced.

The attached table generated by Chant West also shows AMP Future Directions Balanced in the top 10.

However, over a 10-year period, the picture is absolutely dominated by industry funds.

Chant West’s analysis of the 12-month period said that despite trade tensions and concerns 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 research manager, Mano Mohankumar said the result was again led by resilient share markets but was also helped by major asset classes.

“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 said.

“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 still collecting final returns for unlisted asset classes such as unlisted property, unlisted infrastructure and private equity. Infrastructure, which now makes up almost 10% of a typical growth option, was also a key contributor over the year, with returns in the low double digits.

“We estimate that private equity finished with gains in the 8% to 11% range and expect unlisted property, which was in the red in each of the two previous years, to finish with a positive return in the 2% to 5% range.

“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%.”