Super funds down in February – but it could have been much worse

Super funds lost further ground after a tumultuous February, but a mid-month turnaround in share markets limited the damage.  The median growth fund (61 to 80% allocation to growth assets) ended up retreating just 0.4%, bringing the return over the eight months of the financial year to date to -1.6%.

Key highlights include:

There has been much attention to the share market falls in the early part of this year but members need to remember that superannuation is for the long term.  The typical return objective for growth funds is to outperform inflation by 3.5% per annum over periods of five years or longer, and funds have been delivering on this promise for a very long time.

The lower return / higher volatility environment we’re currently in is likely to continue for some time given the shaky economic backdrop.

Industry funds and retail funds produced broadly similar results in February, with returns of -0.4% and -0.5% respectively.

Read full report.

Source: Chant West

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Advice quality improving, but ‘exceptional’ advice remains elusive

Advice quality improving, but ‘exceptional’ advice remains elusive

The quality of advice continues to improve rapidly, with “poor” and “very poor” advice dwindling, and a new analysis suggests that even though “exceptional” advice remains elusive it’s a legitimately aspirational goal for advisers prepared to put in the effort to go the extra mile.

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