POWERED BY MOMENTUM MEDIA
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
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(%)
