Super returns still recovering from GFC
The degree to which the global financial crisis (GFC) impacted Australian superannuation returns has been confirmed by the latest data released by research house, Chant West, which has revealed that even though returns have recovered by 30 per cent since early 2009, all the GFC losses have not been recovered.
According to Chant West principal Warren Chant, the median growth fund will post a return of about 9 per cent for the 2010-11 financial year, but this has not been enough to see fund members regain the lost ground.
“After falling 27 per cent during the GFC, growth funds have now returned 30 per cent since the end of February, 2009,” he said. “In normal times that would be quite impressive, but the damage done by the GFC has still not be fully repaired, and a further 6 per cent is needed to get back to the pre-GFC levels achieved in late October, 2007.”
Chant has adopted a reasonably cautious approach to super returns over the remainder of the calendar year, suggesting there is “a reasonable chance that funds will again match or exceed the long-term expected return of 7 per cent”.
AUTHOR
Mike Taylor
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