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.
AUTHOR
Hannah Wootton
Recommended for you
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.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
