Super funds hit with biggest loss
The Greek debt crisis has dragged super fund returns for the month of June with a last minute fall on domestic and international share markets, according to SuperRatings.
However, super funds will finish the financial year with a strong result as balanced funds set to close the year up on nine per cent, the sixth consecutive year of positive returns.
June saw the Australian share market fall 6.2 per cent, the biggest monthly loss this financial year, and a decline in international share markets saw global indices fall 2.5 per cent.
Commenting on the fall SuperRatings' chief executive, Adam Gee, said "global shares have been extremely volatile recently with the Greek debt problem and the wider implications for the European Commission weighing heavily on investor sentiment around the world".
"It's a case of bad timing for the majority of Aussie super funds which report their important end of financial year results at June 30, unlike many other countries which have different financial year ends," he said.
For the long term, the research house found during the past five years super funds' balanced options have returned about nine per cent a year, while on a 10 year basis it has been six per cent a year — including the impact of the global financial crisis.
"Some investors can be too quick to doubt their super investment option when they see a sudden dip in markets. However, as we know, superannuation is a long-term strategy and short-term impacts are usually overcome over time," Gee said.
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