After ending the 2020-21 financial year with a typical loss of 3.3 per cent, superannuation funds produced bumper returns in July, with a typical “growth” style investment option, where most people still working have their retirement savings, up 3.1 per cent.
Chant West figures show a typical growth option produced an average annual compound return for the 10 years to July 31 of 8.3 per cent, net of investment fees and tax but before administration fees. Some super funds invest in international shares in a way that removes the effects of changes in currency exchange rates, while others leave their exposures unhedged, leaving fluctuations in exchange rates to affect the returns that members receive.Global shares were up 7.1 per cent in July, in hedged terms. However, the appreciation of the Australian dollar lowered the return, in unhedged terms, to 5.4 per cent, Mohankumar says.
It is understandable that people have been concerned about the ups and downs in their account balances, he says. “However, we’ve been emphasising the importance of focusing on the long-term and amid market uncertainty.”