POWERED BY MOMENTUM MEDIA
Fourth month of positive super returns
The median balanced superannuation option returned 0.9% in July, as markets are still rebuilding from the global sell-off in March, but this is still 4% below where it was at the start of 2020, according to SuperRatings.
SuperRatings data found the median balanced option was down 1.2% over the 12 months to July, and the median growth option had fallen an estimated 1.7%, while the median capital stable option return was a steady 0.5%.
The median balanced pension option was estimated to have fallen 1.2% over the 12 months to July, compared to a drop of 1.9% from the median growth option and a modest rise of 0.5% from the median capital stable option.
July also represented the fourth month in a row of positive returns for super, since the 9.2% drop in March due to the COVID-19 pandemic.
SuperRatings executive director, Kirby Rappell, said: “The outlook is still unclear but based on recent performance super funds have shown they can weather the COVID-19 storm.
“Markets are incredibly difficult to navigate at the moment. Globally, we are seeing a disconnect between the rise in share valuations and the weakness in economic data. Meanwhile, the low yield environment will only be exacerbated by governments issuing more debt to shore up budgets and continue providing support to those affected by the virus.”
However, SuperRatings noted that over the long-term super returns had done an “incredible job at accumulating wealth for retirees over a period that includes two major financial and economic crises”.
Recommended for you
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
