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Investment performance: Latest monthly super returns (to May 2018)

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Note: For investment returns over 1 month, 3 months, 1 year, 3, 5, 7, 10 and 15 years to 31 May 2018 for 5 main investment options offered by super funds, see Table 1 later in the article. For month-by-month performance data, going back more than 4 years (53 months), for the 5 main investment options offered by super funds, see Tables 2 to 6 later in the article. If you’re looking for the latest calendar year performance figures (and previous 7 calendar years), see SuperGuide article Super funds return 10.8% for 2017 calendar year, or for the latest financial year performance figures (and also figures for the 7 previous financial years), see SuperGuide article Super funds gain 10.8% for 2016/2017 financial year.

The median superannuation growth fund gained 0.4% in value for the month of May 2018, and gained 8.0% in value for the financial year to date (11 months), according to superannuation ratings agency, Chant West.

Looking back over the 11 months of the financial year to date, the median growth fund had a zero return for July 2017 (off the back of a zero return for June), but gained 0.6% for August, and gained 0.9% for September 2017, followed by 2.3% gain in value for October 2017, a gain of 1.3% in November 2017, and another median gain of 0.7% in December 2017. The median growth fund had a gain in value of 0.8% for January 2018, and a loss of 0.2% in February 2018, and another median loss in value of 0.7% for March 2018, and a gain of 1.7% in April 2018, followed by a gain of 0.4% for May 2018.

A return for a median fund is simply choosing the return for the fund in the middle of the list of super funds. For an explanation of a growth investment option, a balanced investment option, and a default investment option, and the other main types of investment options see SuperGuide article Superannuation investment: What is the difference between a balanced and growth option?

Investment overview for May 2018

According to Mano Mohankumar, senior investment research manager at Chant West, “Markets are up so far in June, and with less than two weeks of the financial year remaining we estimate that the median return for growth funds is sitting at 9.3%. So the better performing funds have a chance of finishing the year in double digit territory. Overall it’s shaping up as an excellent result when you consider that the typical long-term return objective for growth funds is to beat inflation by 3.5%, which in current terms translates to a return of 5.5% to 6%.”

For the month of May 2018, Australian shares gained 1.2% in value, while international shares gained 1.3% on a hedged basis, and gained 0.4% in value in unhedged terms (the difference, due to the Australian dollar appreciating over that timeframe). Australian Listed Property (A-REITs) gained 3.0% in value for the month, while Global Listed Property (REITs) gained 2.2% for May 2018.

Mohankumar says the performance for the financial year “won’t reach the heights we’ve seen in some recent years, but it’s important to keep things in perspective. Growth funds have had a fantastic run averaging 9.0% per annum over the past eight financial years so even to be close to that level this year is impressive, especially as asset managers have been saving for some time that all asset classes are close to or fully valued and that it’s becoming increasingly difficult to find additional sources of return”.

Mohankumar says that the better performing super funds for the 2017/2018 financial year have been those with higher allocations to listed shares and to unlisted assets generally. He adds: “A lower exposure to traditional bonds and cash would also have helped greatly, because those have been by far the most disappointing sectors over the years”.

On the international markets, Mohankumar notes that in May, “US shares made gains as new economic data was broadly positive and investors took the uncertainty about trade sanctions in their stride. Share markets in the euro zone retreated as a result of the political uncertainty in Italy, while the UK market had another good month.

“Closer to home, the Chinese sharemarket also made gains as macroeconomic data remained firm. In Australia, the RBA kept the official interest rates on hold at 1.5% where it has been since August 2016.”

Note: The majority of international share investments held in super funds are unhedged. Briefly, when a super fund fully hedges your international investments against movements in the Australian dollar or foreign currency, your investment return is solely based on the merits of the investment rather than the strength or otherwise of the Australian dollar. For more information about hedged and unhedged international shares, see SuperGuide article Revisited: Ban unhedged international shares in default investment options.

See performance table (Table 1) later in the article, for investment returns over 1 month, 3 months, 1 year, 3, 5, 7, 10 and 15 years to 31 May 2018 for 5 main investment options.

Note: Each month, we provide updated monthly investment performance of superannuation funds. For the latest monthly returns for the 5 main types of superannuation investment options (including month-by-month returns for each investment option going back from January 2014, and current to May 2018), see Tables 2 to 6 (All Growth, High Growth, Growth, Balanced and Conservative) later in the article.

Quick access to investment performance tables

If you are interested in checking out the tables immediately, rather than reading the rest of the article, for your convenience, click on the relevant link below to access the performance table that interests you.

Tip: Alternatively, compare monthly investment returns from month to month, or over specific timeframes. Using the monthly investment performance data for the 5 different investment options going back at least 4 years, we have created the SuperGuide Monthly Superannuation Returns Performance Reckoner (for 5 investment options) Monthly Superannuation Returns Performance Reckoner (for 5 investment options).

Monthly performance for 10 months to April 2018

For the month of May 2018, the 5 main investment options offered by Australian super funds all gained in value: All Growth (0.5%), High Growth (0.5%), Growth (0.4%), Balanced (0.3%) and Conservative (0.3%).

For the month of April 2018, the 5 main investment options offered by Australian super funds all gained in value: All Growth (2.7%), High Growth (2.2%), Growth (1.7%), Balanced (1.2%) and Conservative (0.7%).

For the month of March 2018, the 5 main investment options offered by Australian super funds all lost in value: All Growth (-1.6%), High Growth (-1.2%), Growth (-0.7%), Balanced (-0.5%) and Conservative (-0.1%).

For the month of February 2018, the 5 main investment options offered by Australian super funds lost in value or delivered a zero return: All Growth (-0.4%), High Growth (-0.2%), Growth (-0.2%), Balanced (-0.2%) and Conservative (0.0%).

For the month of January 2018, the 5 main investment options offered by Australian super funds gained in value: All Growth (1.0%), High Growth (1.0%), Growth (0.8%), Balanced (0.6%) and Conservative (0.4%).

For the month of December 2017, the 5 main investment options offered by Australian super funds gained in value: All Growth (0.8%), High Growth (0.7%), Growth (0.7%), Balanced (0.4%) and Conservative (0.3%).

For the month of November 2017, the 5 main investment options offered by Australian super funds gained in value: All Growth (1.8%), High Growth (1.5%), Growth (1.3%), Balanced (1.0%) and Conservative (0.7%).

For the month of October 2017, the 5 main investment options offered by Australian super funds gained in value: All Growth (3.5%), High Growth (2.8%), Growth (2.3%), Balanced (1.7%) and Conservative (1.2%).

For the month of September 2017, the 5 main investment options offered by Australian super funds gained in value: All Growth (1.4%), High Growth (1.2%), Growth (0.9%), Balanced (0.6%) and Conservative (0.4%).

For the month of August 2017, the 5 main investment options offered by Australian super funds gained in value: All Growth (0.8%), High Growth (0.7%), Growth (0.6%), Balanced (0.6%) and Conservative (0.4%).

For the month of July 2017, 3 of the main investment options (High Growth, Growth and Balance) delivered a zero return, while one option (All Growth) lost 0.1% in value, and the median Conservative option delivered the best performance for July, with a 0.1% gain in value. The returns for 3 months to June 2017 were better thanks to the strong months of April and May 2017.

Based on previous comments made by Warren Chant of Chant West, and updating these comments with reported results since December 2011, growth funds have delivered 57 positive monthly returns out of 77 up to May 2018. The month of May 2018 resulted in a gain in value of 0.4% for the median growth fund.

Table 1 below lists the performance figures for the five main asset allocations for: 1 month, 3 months, 1 year, 3 years, 5 years, 7 years, 10 years, and 15 years to 30 April 2018. For an explanation of the different investment options see SuperGuide article Superannuation investment: What is the difference between a balanced and growth option?

Top performers to 31 May 2018: Comparing 5 main investment options

Assessing 1-month returns: Over the 1-month period to 31 May 2018, all of the main investment options delivered a positive return: All Growth (0.5%) and High Growth (0.5%), Growth (0.4%), Balanced (0.3%) and Conservative (0.3%).

Monitoring FYTD returns: For the 11 months to 31 May 2018, all 5 investment options gained in value: the top performer was the All Growth option with a 10.9% gain in value over the 11 months, followed by the High Growth option (9.7% gain in value), and then the Growth option which gained 8.0% in value over the same timeframe. The Balanced option gained 6.1% in value over the 11 months to May 2018, while the Conservative option gained 4.4% in value.

Return for 12 months to 31 May 2018: For the 12 months to 31 May 2018, all 5 investment options gained in value: the top performer was the All Growth option with a 10.4% gain in value over the 12 months, followed by the High Growth option (9.5% gain in value), and then the Growth option which gained 8.0% in value over the same timeframe. The Balanced option gained 6.2% in value over the 12 months to May 2018, while the Conservative option gained 4.5% in value. (For more information on the latest calendar year investment returns, see SuperGuide article Super funds return 10.8% for 2017 calendar year, and for the latest financial year investment returns, see SuperGuide article Super funds gain 10.8% for 2016/2017 financial year).

Performance over 5 years: The median All Growth option outperformed other investment options over 5 years to 31 May 2018 (10.8%), followed by the High Growth option (10.0%), the Growth option (8.8%), and then the Balanced option (7.0%), and the Conservative option (5.4%).

Performance over 10 years: Over 10 years to 31 May 2018, the All Growth option gained 6.3% in value each year, on average, the High Growth option gained, on average, 6.4% in value each year, with the Growth option gaining 6.0% each year, followed by the Balanced option (5.6%) and the Conservative option (5.2%).

Performance over 15 years: Over the 15-year period to 31 May 2018, the High Growth option (8.4% pa) outperformed the All Growth option (8.2% pa), and both of these riskier options outperformed the other 3 options —Growth option (7.8% pa), the Balanced option (6.6% pa), and the Conservative option (6.0% pa).

According to previous commentary from Chant West, the performance figures for the 10-year period are still weighed down by the ‘GFC effect’, but only for the All Growth and High Growth options, and those returns are improving. The 5-year and 7-year returns reflect the strong performance of listed shares and property, which means the investment options with a higher proportion of growth assets have performed better over these timeframes (see Table 1 below for more information).

Table 1: Summary performance table for 5 main investment options (to 31 May 2018)

Fund Category Growth Assets (%) 1 mth (%) 3 mths (%) FYTD (%) 1 Yr (%) 3 Yrs (% pa) 5 Yrs (% pa) 7 Yrs (% pa) 10 Yrs (% pa) 15 Yrs (% pa)
All Growth 100 0.5 1.3 10.9 10.4 7.4 10.8 10.1 6.3 8.4
High Growth 81 – 100 0.5 1.5 9.7 9.5 7.5 10.0 9.4 6.4 8.2
Growth 61 – 80 0.4 1.3 8.0 8.0 6.6 8.8 8.5 6.0 7.8
Balanced 41 – 60 0.3 1.1 6.1 6.0 5.2 7.0 7.0 5.6 6.6
Conservative 21 – 40 0.3 0.9 4.4 4.5 4.3 5.4 5.8 5.2 6.0

Note: Performance is shown net of investment fees and tax. It does not include administration fees or adviser commissions.

Source: Chant West 19 June 2018 media release (www.chantwest.com.au), and subsequent information provided by Chant West.

Tables 2 to 6: Investment performance month-by-month data for 5 main investment options

Set out below is month-by-month performance data for the 5 main investment options (All Growth, High Growth, Growth, Balanced, Conservative), from January 2014 through to 31 May 2018:

Table 2: All Growth (100%) month-by-month performance to 31 May 2018

  2014 2015 2016 2017 2018
January -1.9% 2.5% -4.0% -0.5% 1.0%
February 3.0% 4.9% -1.2% 1.7% -0.4%
March -0.8% 0.7% 2.3% 2.3%  -1.6%
April 0.9% -0.5% 2.0% 2.1% 2.7%
May 1.3% 1.4% 3.3% 0.5% 0.5%
June -0.1% -3.3% -2.2% -0.4%
July 1.8% 3.7% 4.1% -0.1%
August 1.1% -4.7% 0.3% 0.8%
September -0.9% -2.2% -0.2% 1.4%
October 1.5% 4.9% -1.3% 3.5%
November 1.0% -0.5% 2.2% 1.8%
December 1.6% 0.0% 3.2% 0.8%

Note: Performance is shown net of investment fees and tax. It does not include administration fees or adviser commissions.

Source: Chant West media releases over at least the past 4 years (www.chantwest.com.au), and subsequent information provided by Chant West.

Table 3: High Growth (81-100%) month-by-month performance to 31 May 2018

  2014 2015 2016 2017 2018
January -1.3% 2.2% -2.9% -0.3% 1.0%
February 2.6% 4.0% -0.7% 1.3% -0.2%
March -0.5% 0.6% 2.1% 1.9%  -1.2%
April 0.9% -0.4% 1.7% 1.8% 2.2%
May 1.2% 1.3% 2.8% 0.5% 0.5%
June 0.1% -2.4% -1.5% 0.0%
July 1.5% 2.9% 3.3% 0.0%
August 1.0% -3.7% 0.4% 0.7%
September -0.7% -1.4% 0.1% 1.2%
October 1.4% 4.0% -0.9% 2.8%
November 0.9% -0.4% 1.6% 1.5%
December 1.2% 0.2% 2.8% 0.7%

Note: Performance is shown net of investment fees and tax. It does not include administration fees or adviser commissions.

Source: Chant West media releases over at least the past 4 years (www.chantwest.com.au), and subsequent information provided by Chant West.

Table 4: Growth (61-80%) month-by-month performance to 31 May 2018

  2014 2015 2016 2017 2018
January 0.9% 2.0% -2.3% -0.1% 0.8%
February 2.1% 3.1% -0.4% 1.2% -0.2%
March -0.3% 0.6% 1.8% 1.5%  -0.7%
April 0.8% -0.4% 1.4% 1.5% 1.7%
May 1.1% 1.0% 2.3% 0.5% 0.4%
June 0.2% -2.0% 2.3% 0.5%
July 1.2% 2.3% 2.7% 0.0%
August 1.0% -2.9% 0.3% 0.6%
September -0.6% -1.1% 0.1% 0.9%
October 1.2% 3.2% -0.7% 2.3%
November 0.8% -0.3% 1.1% 1.3%
December 1.2% 0.1% 2.3% 0.7%

Note: Performance is shown net of investment fees and tax. It does not include administration fees or adviser commissions.

Source: Chant West media releases over at least the past 4 years (www.chantwest.com.au), and subsequent information provided by Chant West.

Table 5: Balanced (41-60%) month-by-month performance to 31 May 2018

  2014 2015 2016 2017 2018
January -0.4% 1.6% -1.4% 0.0% 0.6%
February 1.5% 2.1% -0.2% 0.9% -0.2%
March -0.2% 0.5% 1.4% 1.2%  -0.5%
April 0.7% -0.3% 1.0% 1.2% 1.2%
May 0.9% 0.7% 1.7% 0.5% 0.3%
June 0.3% -1.4% -0.4% -0.1%
July 0.9% 1.8% 2.0% 0.0%
August 0.8% -1.9% 0.3% 0.6%
September -0.3% -0.8% 0.1% 0.6%
October 1.1% 2.2% -0.6% 1.7%
November 0.7% -0.2% 0.7% 1.0%
December 0.9% 0.1% 1.7% 0.4%

Note: Performance is shown net of investment fees and tax. It does not include administration fees or adviser commissions.

Source: Chant West media releases over at least the past 4 years (www.chantwest.com.au), and subsequent information provided by Chant West.

Table 6: Conservative (21-40%) month-by-month performance to 31 May 2018

  2014 2015 2016 2017 2018
January 0.0% 1.2% -0.6% 0.1% 0.4%
February 1.0% 1.3% 0.0% 0.7% 0.0%
March 0.0% 0.4% 0.9% 0.7%  -0.1%
April 0.6% 0.2% 0.7% 0.8% 0.7%
May 0.8% 0.4% 1.1% 0.5% 0.3%
June 0.4% -0.9% 0.2% 0.0%
July 0.7% 1.2% 1.3% 0.1%
August 0.6% -1.1% 0.3% 0.4%
September -0.2% -0.4% 0.1% 0.4%
October 0.8% 1.4% -0.4% 1.2%
November 0.6% -0.1% 0.2% 0.7%
December 0.7% 0.1% 1.1% 0.3%

Note: Performance is shown net of investment fees and tax. It does not include administration fees or adviser commissions.

Source: Chant West media releases over at least the past 4 years (www.chantwest.com.au), and subsequent information provided by Chant West.

For more information…

For more information about investment performance for Australian super funds, see the following SuperGuide articles:

For more specific information about investment performance for Australian super funds for the latest calendar year, see the following SuperGuide articles:

For more specific information about investment performance for Australian super funds for the latest financial year, see the following SuperGuide articles:

For more information about comparing the investment performance of Australian super funds, see the following SuperGuide articles:

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