Crediting rates make healthy recovery

By Mike Taylor

Average returns for superannuation fund members remain relatively strongly, according to a survey published by Sydney-based firm, SuperRatings.

The survey shows that from July 1, 2003 to January 31 this year, the average superannuation fund has credited members in their balanced investment options with earnings of 6.1 per cent, while for the 12 months ended January 31, the median crediting rate was 10.2 per cent.

The SuperRatings survey covers the major investment options offered by over 40 of Australia’s largest multi-employer superannuation funds, representing over $80 billion in assets.

According to SuperRatings managing director Jeff Bresnahan, the average January result of plus 0.2 per cent continues the positive monthly trend for this financial year, with five of the seven months adding to members’ benefits.

He says the superannuation funds which appear to have gained the most in recent times are those that have decreased property holdings in favour of both international and Australian shares.

According to the SuperRatings data, the best-performed fund in terms of returns to members for the seven months to January 31 was HESTA Core Pool with 8 per cent, followed by Equipsuper Growth with 7.9 per cent and IOOF Balanced Growth with 7.8 per cent.

Bresnahan said high single-digit returns would be good value for consumers by the time choice of fund comes into force on July 1.

“We maintain our position that any high single digit result as at June 30 will represent a sound result given the current economic climate and the relatively low inflationary environment,” he said.