AUSTRALIA - The median superannuation growth fund was up 9.9% in the quarter ended September 30 on the back of strong domestic equity and real estate markets.
Data by consulting firm Chant West showed the median growth fund returned 2.6% in September. Growth funds invest between 61% and 80% to growth assets and are the default funds for most investors.
Australian equities were up 21.6% for the quarter, with local real estate investment trusts up 30.8%.
Despite the positive returns in the third quarter, the strong Australian dollar worked against the performance of many funds.
Principal Warren Chant said: "While share markets around the world have been rising strongly, most super fund members haven't picked up the full benefit because earnings measured in overseas currencies - especially the US dollar - are worth less when converted into Australian dollars.
"Having said that, the currency effect can work both ways. We saw that in the period between end-October 2007 and end-February 2009, when share markets were being battered but the falling Australian dollar provided some cushioning."
According to the firm, the typical hedge ratio for international equity in growth funds is 38%.
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.