Volatile investment markets give super funds a bumpy ride
Positive double-digit returns are expected for superannuation funds by the end of the financial year, according to SuperRatings.
Super funds produced a positive return for the month of May back from negative returns in April thanks to rising investment markets, the research house found.
SuperRatings founder, Jeff Bresnahan, said the inconsistency is on the back of volatile investment markets.
"Declining share markets and ongoing concern about global economic growth have taken a toll on financial investment markets during early June," Bresnahan said.
"However, most super funds are still set to produce a strong return for the year to June 30, if not a double-digit percentage return."
SuperRatings' analysis found nervous investors sold down Australian shares in the first half of June, following uncertainty about demand for Australian exports by overseas companies and slower internal demand by local companies and households.
"The financial year is expected to be the sixth consecutive year of profits for super funds, reinforcing the ability of long-term strategies to outride most investment bumps," Bresnahan said.
The median Balanced pension fund returned one per cent for the month of May.
Recommended for you
The super fund’s CEO has confirmed he will finish his role in 2026.
New data shows millions of Australians have little idea how their super funds have performed over the past year.
Small-business advocates have warned the government’s Payday Super timeline risks chaos without more time, cost support, and fair penalties.
Insignia Financial’s Master Trust portfolio has expanded despite net outflows, as positive markets and new product initiatives drive growth.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
215.17 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
