Super funds stay on-track amongst global tension
Despite geopolitical tensions globally making investors nervous, superannuation funds have remained on track for double-digit returns for the 2018 financial year, delivering modest positive returns in May of 0.5 per cent for the median balanced option.
Research from SuperRatings showed that super funds did struggle from global uncertainty despite remaining above the line, as events such as President Trump’s on-again, off-again trade war with China left markets frustrated.
“May was a challenging month for super, with global factors playing a significant role,” SuperRatings chief executive, Kirby Rappell said.
“The ongoing tariff saga between the US and China, along with talks between President Trump and North Korean leader Kim Jong-Un seemed to wrongfoot markets in May, and super funds were not immune from the uncertainty.”
Rappell said that with returns for the 2018 financial year already at 8.4 per cent, double-digit returns for the year were still “entirely possible” despite the above.
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
