et another bounce in investor confidence has led to a turnaround in superannuation fund returns, with the median balanced option jumping by 1.7% in March. According to SuperRatings, the bounce in March returns simply reflected the improved optimism in the global economy, with many markets across the world, rallying hard during the month, particularly in Asia.
“The most recent returns have been promising and will no doubt be of comfort to Australian superannuants,” said SuperRatings Chairman Jeff Bresnahan. “However, whilst we are starting to see signs that the global economic recovery may be setting in, there is no disputing that market volatility continues to be a factor. Looking at the data, it would appear that the fight between the Bears and Bulls is far from over.”
The first 9 months of the financial year has seen super funds fall by just 0.1%, with four positive months offset by 5 negative ones. Every step forward during this financial year has been quickly met by a step back and vice versa. While March returns were positive, poor returns in January and February meant that over the full quarter funds lost 1.0% and offset the modest gains achieved in the six months to 31 December 2015. So, in terms of super funds achieving their seventh consecutive positive return for 2015/16, this possibility remains balanced on a knife edge, with even the smallest bit of news capable of moving markets and hence super fund returns, one way or the other.
| Period | Accumulation Returns |
| The Month of March 2016 | 1.7% |
| Financial Year return to 31 March 2016 | – 0.1% |
| Rolling 1 year return to 31 March 2016 | – 1.2% |
| Rolling 3 year return to 31 March 2016 | 8.1% p.a. |
| Rolling 5 year return to 31 March 2016 | 7.3% p.a. |
| Rolling 7 year return to 31 March 2016 | 8.6% p.a. |
| Rolling 10 year return to 31 March 2016 | 5.1% p.a. |
