Super returns continue volatile ride

19 April 2016
| By Mike |
image
image image
expand image

Volatility continues to be the prevailing reality for Australian superannuation fund members, but despite the ebbs and flows, funds have fallen just 0.1 per cent for the first nine months of the financial year, according to the latest data from SuperRatings.

The data confirmed that the financial year to date performance had been a story of four positive months offset by five negative months, but a bounce in investor confidence saw the median balanced option jumping by 1.7 per cent in March.

Commenting on the data, SuperRatings chairman, Jeff Bresnahan cautioned that while the most recent returns had been promising and there were signs a global economic recovery might be setting, market volatility would continue to be a factor.

He said the first nine months of the financial year had seen super funds fall by just 0.1 per cent, with four positive months offset by five negative ones.

"Every step forward during this financial year has been quickly met by a step back and vice versa. While March returns were positive, poor returns in January and February meant that over the full quarter funds lost one per cent and offset the modest gains achieved in the six months to 31 December 2015," Bresnahan said.

"So, in terms of super funds achieving their seventh consecutive positive return for 2015/16, this possibility remains balanced on a knife edge, with even the smallest bit of news capable of moving markets and hence super fund returns, one way or the other."

"Long-term returns remain solid, despite recent market turbulence," he said.

"Over a 10-year period, returns are not quite at the CPI+3.5 per cent benchmark, although this is reflective of a more challenging investment environment post-GFC. However, when we look back to returns since 1992, the story remains strong."

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. ...

1 year 6 months ago
Kevin Gorman

Super director remuneration ...

1 year 6 months 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 ...

1 year 6 months ago

Economists from the big four banks have all predicted the RBA to deliver another rate cut during its July meeting; however, some admit the decision will be a close call....

2 hours ago

AMP’s strong 2024–25 returns were anything but a fluke – they were the product of a carefully recalibrated investment strategy that began several years ago, when the fund...

2 hours ago

ASIC is “considering what options” it has to hold super trustees to account for including the failed schemes on their platforms, according to its deputy chair....

2 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5