Super funds look to end FY19 weakly

SuperRatings/superannuation/

16 April 2019
| By Hannah Wootton |
image
image image
expand image

Superannuation funds are heading for a disappointing FY19, as lessening market momentum and global growth challenges limit recovery from December’s equities slump.

Balanced superannuation options’ returns were largely flat as weaker economic data and fears of further falls in home prices weighed on investors’ minds in March. SuperRatings found that the typical balanced option returned just 0.8 per cent in March, for example, while growth options’ returns stagnated at 0.8 per cent for the month after stronger gains of 3.2 and 3.4 per cent in January and February respectively.

In terms of the final quarter of FY19, a weakening outlook could make it difficult for funds to recover much of this lost ground. The fact that the estimated financial year-to-date return for median balanced options by SuperRatings is 3.2 per cent was telling of this, as this was so far the seventh worse result since the introduction of the super guarantee in 1992.

SuperRatings executive director, Kirby Rappell, warned that falling home prices combined with the weaker share market could impact retirees beyond just their superannuation returns.

“Falling house prices have a negative wealth effect that flows through to consumer spending, but they also throw a spanner in the works for many Australians approaching retirement who may have planned on downsizing and adding the windfall to their nest egg,” he said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months ago

Commonwealth Bank has formally dropped to zero advisers following LGT Crestone’s acquisition of its advice arm – some six years on from the Hayne royal commission. ...

3 weeks 6 days ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

1 week 3 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

2 weeks 5 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
3