Super funds decline in face of volatility

19 April 2018
| By Hannah |
image
image
expand image

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.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

10 months 2 weeks ago
Kevin Gorman

Super director remuneration ...

10 months 3 weeks ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

10 months 3 weeks ago

The fund’s inaugural chief retirement officer is looking to establish a new venture. ...

4 hours 46 minutes ago

The sovereign wealth fund remains cautious of the impact of high inflation as it announces a strong return in its latest update....

22 hours 50 minutes ago

In this latest edition, Anna Shelley, CIO at AMP, shares the fund’s approach to current market conditions and where it continues to uncover key opportunities....

23 hours 54 minutes ago