In what has proved to be the most volatile investment year since the GFC, the majority of Australia’s superannuation funds will see their flagship balanced options stumble past 30 June with a positive return. In what can be likened to a title fight, funds have had to withstand markets that dragged them into negative territory in six out of the twelve months, including a late Brexit onslaught which helped drag the funds down by around 1.3% in the month of June.
But that wasn’t enough to stop them recording their seventh consecutive positive result since the depths of the GFC, with members of an elite group of funds recording over 100% in investment gains since that time. The 7-year run is the longest in 15 years, when funds enjoyed a 9-year streak of positive returns from 1992 until 2001.
“Overall, we expect the average Australian in a balanced option to see their super increase by around 2.3%, but it will be very much the case of ‘haves’ and ‘have nots’ when it comes to individual fund returns,” said SuperRatings’ Chairman, Jeff Bresnahan. “Once again those in funds that have underperformed this year will see their returns up to 7% lower than the more successful funds. For 2015/16 we expect results to range between minus 1% and positive 6%, so unfortunately for some, they will see red ink on their member statements”.
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