Results released by Chant West have shown that superannuation funds have shaken off the COVID-19 recession, with the median growth fund (61 to 80 per cent in growth assets) returning members 3.7 per cent gains.
Chant West senior investment research manager Mano Mohankumar praised the funds for their risk management strategies in 2020.
"If we take ourselves back to late March, the prospect of finishing the year up 3.7 per cent would’ve been inconceivable. 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.
"Over February and March, major share markets took a beating and the median growth fund plummeted 12 per cent. Markets rallied from that point, however, and growth funds rode the rally to surge 15.5 per cent over the remaining nine months of the year," said Mr Mohankumar.
He highlighted the resilience of Australia's super system.
“Over the longest period we can measure, Australia’s major super funds have delivered on their promises to members, growing their wealth in real terms while protecting them from undue risk. That’s a great achievement, and it’s a message that should be conveyed as widely as possible," he said.
“Super has proven to be a great way to invest, and people should be confident in entrusting their savings to the major Australian funds that are among the best in the world.”
The superannuation researcher also encouraged members to look to the long-term performance of super funds, ensuring not to base their decisions on one good year.
“Certainly, look at what your fund delivered in 2020, but it’s far more important to know what its long-term objectives are and whether it’s achieving them. Most growth funds aim to beat inflation by 3 to 4 per cent a year,” Mr Mohankumar explained.
The top 10 funds for 2020 are:
- Suncorp Multi-Manager Growth: 9.6 per cent
- Australian Ethical Super Balance: 8.3 per cent
- Vision Super Balanced Growth: 6.2 per cent
- VicSuper Growth (My Super): 6.0 per cent
- UniSuper Balanced: 5.9 per cent
- AustralianSuper Balanced: 5.5 per cent
- Aware Super Growth: 5.5 per cent
- IOOF MultiMix Balanced Growth: 5.2 per cent
- Prime Super My Super: 5.2 pr cent
- Equip Balanced Growth: 5.1 per cent
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