Super funds post fourth consecutive negative quarter
Superannuation funds have posted a fourth consecutive quarter of negative returns, with super funds hitting -3.4 per cent in the last quarter, according to a SuperRatings survey.
The median return over the past 12 months has gone 11.6 per cent into the red, the worst return since the introduction of compulsory super. Twelve-month returns are expected to fall more by the end of October.
However, the long-term performance of balanced options are expected to do well relative to inflation, with growth of just over 7 per cent over 10 years, in line with expectations.
Only two funds have posted double-digit returns over the past five years, MTAA Super, balanced, and Buss(Q), balanced growth.
There is doubt that any balanced investment options will be able to post double-digit returns for “quite some time” after October, according to the survey.
There is also evidence that higher than average numbers of people are moving to cash, while super fund members are streaming into seminars run by funds in an effort to understand the market conditions and its effect on their superannuation, according to SuperRatings.
Recommended for you
Compared to four years ago when the divide between boutique and large licensees were largely equal, adviser movements have seen this trend shift in light of new licensees commencing.
As ongoing market uncertainty sees advisers look beyond traditional equity exposure, Fidante has found adviser interest in small caps and emerging markets for portfolio returns has almost doubled since April.
CoreData has shared the top areas of demand for cryptocurrency advice but finds investors are seeking advisers who actively invest in the asset themselves.
With regulators ‘raising the bar’ on retirement planning, Lonsec Research and Ratings has urged advisers to place greater focus on sequencing and longevity risk as they navigate clients through the shifting landscape.
