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
Superannuation funds have posted another year of strong returns, but this time, the gains weren’t powered solely by Silicon Valley.
Australia’s $4.1 trillion superannuation system is doing more than funding retirements – it’s quietly fuelling the nation’s productivity, lifting GDP, and adding thousands to workers’ pay packets, according to new analysis from the Association of Superannuation Funds of Australia (ASFA).
Large superannuation accounts may need to find funds outside their accounts or take the extreme step of selling non-liquid assets under the proposed $3 million super tax legislation, according to new analysis from ANU.
Economists have been left scrambling to recalibrate after the Reserve Bank wrong-footed markets on Tuesday, holding the cash rate steady despite widespread expectations of a cut.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
