Amid ongoing concerns about Middle East tensions and persistent inflation, a surge in global stock markets has delivered another year of robust performance for Australia's A$4.4 trillion (US$3.1 trillion) pension industry.
Research from ChantWest indicates that for the financial year ending June 30, the median return for balanced growth superannuation funds was 9.5%. The gains were primarily driven by international equities, with almost all major asset classes recording positive returns.
Mano Mohankumar, head of pension investment research at ChantWest, stated that currency-hedged international shares soared 25.5%, supported by sustained market enthusiasm for the artificial intelligence sector and strong corporate earnings. He noted that even unhedged global shares delivered a 17% return, despite the Australian dollar strengthening against most major currencies.
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