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Game DeveloperIn the realm of Australian superannuation funds, a notable revelation has emerged showcasing the top 10 stellar performers of 2024. According to recent data from Chant West, the median growth superannuation fund in Australia delivered an impressive total return of 11.4% during the past year.
Chant West categorizes a median growth fund as one that allocates between 61% to 80% of superannuation funds into growth investment assets, including international and ASX shares. This noteworthy 11.4% return has surpassed the long-term average target of 6% and exceeded the 9.9% return recorded in 2023.
The positive momentum observed in 2024 marks the 12th year of favorable returns for Australian super funds out of the last 13 years. The driving force behind the growth of superannuation funds last year was primarily attributed to the performance of international share markets, which collectively yielded returns of 21.2% on a currency-hedged basis and an impressive 31.2% in unhedged terms.
The depreciation of the Australian dollar, dropping from around 68 US cents to 62 US cents by the end of 2024, contributed significantly to this disparity. Additionally, ASX stocks returned 11.4% and played a substantial role in the overall outstanding results for Australian superannuation funds.
Chant West’s senior investment research manager, Mano Mohankumar, highlighted that funds with higher allocations to shares outperformed more conservative funds. In particular, ‘All growth funds’ and ‘High growth funds’ showcased median returns of 16.5% and 13.8%, respectively. On the other hand, balanced superannuation funds and conservative funds delivered median returns of 8.7% and 6.3% in 2024, respectively.
Furthermore, Chant West is in the process of finalizing returns for unlisted asset classes. Mohankumar anticipates a mid-single-digit loss for unlisted property, while private equity and unlisted infrastructure are expected to see gains ranging from 7% to 10%. Listed real assets, including Australian listed property, international listed property, and international listed infrastructure, also exhibited positive returns.
To provide a glimpse into the top performers, here are the top 10 median growth superannuation funds of 2024, as disclosed by Chant West:
1. UniSuper Growth: 14.7%
2. Colonial First State (CFS) FirstChoice Growth: 13.6%
3. Mine Super Growth: 13.4%
4. Vanguard Super SaveSmart Growth: 12.9%
5. smartMonday Balanced Growth: 12.8%
6. Mercer Growth: 12.7%
7. legalsuper MySuper Balanced: 12.4%
8. Aware Super Balanced: 12.4%
9. AMP Future Directions Balanced: 12.2%
10. Brighter Super Balanced: 12.1%
These top performers exemplify the strength and resilience of the Australian superannuation sector, showcasing robust returns and solid performance in the dynamic investment landscape of 2024.
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