Pessimism clouds outlook

Superannuation trustees appear to hold grave misgivings about the immediate outlook for investment returns.

A survey of around 30 trustees conducted at a recent forum organised by the Centre for Investor Education (CIE) found that around 82 per cent expect their default fund to be down a further 500 basis points for the year to June 30, compared to the same time last year, while 9 per cent believe returns could be down by as much as 1,000 basis points.

The survey found only 9 per cent expected a higher return, up 500 basis points, and no one was expecting any improvement beyond that.

At the same time, nearly 60 per cent of those surveyed said they expected to the Australian dollar to be trading between 50 and 69 cents around June 30, and none were expecting shares, property or hedge funds to show any improvement in the short term.

Asked what asset class they currently preferred, 53 per cent nominated infrastructure, 40 per cent said private equity and the remainder nominated commodities.

Commenting on the result, the managing director of the CIE, Gabriel Szondy, said they highlighted the degree of pessimism now engulfing all sectors of the investment industry.