POWERED BY MOMENTUM MEDIA
Super funds decline in face of volatility
Australian super funds have suffered the second monthly decline in as many months, as global volatility creates an environment not seen by most super members in a decade, according to SuperRatings.
The research house found that members in a balanced fund option in March received interim returns of -0.7 per cent, while those in growth options suffered a drop of -1.1 per cent. Members exposed to Australian shares only suffered the largest slump, at -3.1 per cent.
The cash index was the only one to record gains, growing by 0.1 per cent for March.
Median balances were well ahead of the financial year to date, however, and SuperRatings still believed that superannuation remained one of the best investments over the last ten years.
As the graph below shows, the February and March declines did not significantly damage overall growth.
SuperRatings chief executive, Kirby Rappell, said this data showed that superannuation was still one of the best sources of wealth generation for Australians despite ups and downs.
He also said that super members needed to adjust to the return of volatility to markets.
“Volatility is undoubtedly emerging as the new normal, presenting an environment that many super members have not experienced in a decade. This volatility needs to be managed but no one should lose sight of the fact that super continues to deliver strong returns.”
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
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
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
