SuperRatings: Super funds down in first quarter

Financial market volatility continues to be a challenge for superannuation funds with the median Balanced Option down 1.7 per cent for the first quarter of the 2015/16 financial year.

It is only the 5th time a negative quarter has been recorded during the past 5 years. The disappointing result was cemented by a 1.0 per cent decline in the month of September. This followed on from August’s 2.9 per cent fall, which was the largest monthly loss since the GFC.

The quarterly loss comes despite a good start to the new year after July’s strong 2.3 per cent return, which helped offset some of the losses from the past two months.

“Concerns about global growth intensified in September as investors and market sentiment remained pessimistic” SuperRatings founder Jeff Bresnahan said. “Although the median Balanced Option recorded a 1.7 per cent fall during the quarter, this is substantially less than the falls seen across most growth asset classes and investment options. Once again, the diversification of a Balanced Option has helped cushion losses for the majority of superannuation members” Mr Bresnahan said.

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Source: SuperRatings

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‘But-for’ compensation will live on, just not at the CSLR

‘But-for’ compensation will live on, just not at the CSLR

The Australian Financial Complaints Authority will continue to issue controversial “but-for” determinations after 30 June next year, even though investors who lodge complaints with it after that date will not be eligible for “but for” compensation from the Compensation Scheme of Last Resort. This is one of the reforms aimed at putting the CSLR on a more sustainable financial footing, and at easing the funding burden on the advice sector.

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