Super returns deeply negative - again
The superannuation funds ratings houses have confirmed what most financial planners already knew — Australian fund members have now suffered two consecutive financial years of negative returns.
Data released by both Chant West and SuperRatings yesterday confirmed the magnitude of the losses suffered by fund members, with Chant West pointing to an average return of minus 13.3 per cent for the median growth fund.
SuperRatings pointed to a similar expectation for returns, but claimed they needed to be measured against the minus 46 per cent return on listed property and the minus 25 per cent return registered by the Australian Securities Exchange and the Dow Jones.
As well, SuperRatings pointed to the fact that since the introduction of the superannuation guarantee in Australia, the average annual return for balanced investment options within superannuation had been 6.7 per cent a year.
For his part, Chant West principal Warren Chant said super funds had not performed as they were supposed to for the past three years largely because investors had not been rewarded for including higher levels of growth assets in their investment mix.
AUTHOR
Mike Taylor
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
