International shares boost super funds
International shares helped superannuation funds bounce back in October with an increase of eight per cent for the month, according to SuperRatings.
Super fund's median balanced option was up three per cent for the month, but currency movements as the Australian dollar increased in value against the US dollar, wiped out some of the international share market gains.
Median returns for the financial year-to-date sat at 1.3 per cent, the research house said.
SuperRatings founder, Jeff Bresnahan, said: "Strong performances in overseas and local markets made October a highly successful month for super funds, allowing members to regain most of their losses experienced in August and September".
"Despite the strong bounce back, negative market conditions have returned with falls across several key asset classes recently. We estimate the median balanced option to be down 0.6 per cent for November, to date," he said.
Bresnahan noted super funds would continue to face challenging market conditions in the short term as there would be no let up on ongoing financial volatility.
To date, the calendar year proved challenging for most funds with negative returns in four out of the 10 months, SuperRatings said.
The median balanced option return for 2015 to date was 5.5 per cent, only slightly below the 5.7 per cent the year before. However, both years were well below the 13.7 per cent to date in 2013.
Recommended for you
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
