September quarter positive for super funds
The latest SuperRatings data has revealed returns for the balanced investment option on most superannuation funds during the month of September were strong, with a median return of 1.4 per cent.
The final month in the first quarter of the new financial year boosted the median fund balanced option return for the period to 2.9 per cent.
The main driving forces behind the result were international shares, which produced a September post-tax and fees return of 2.7 per cent, and property, which posted a return of 2.9 per cent.
The September figures meant most of the superannuation fund balanced options generated double figure returns in the past 12 months, with Westscheme — Trustee Selection, Telstra Super Corp Plus — Balanced, and mTAA Super Balanced toping the field, producing returns of 15 per cent, 13.7 per cent, and 13.6 per cent respectively.
SuperRatings managing director Jeff Bresnahan said the figures meant most superannuation funds were currently achieving their return targets for five years of inflation plus 3.5 per cent.
“The rolling three-year results are incredibly strong at 13.6 per cent, and without a major correction within the markets we will see the five-year figures creep into double digits during the course of this financial year,” he said.
“No matter how you look at it, most fund members are experiencing returns which have not been seen for a very long time,” Bresnahan added.
Recommended for you
Advisers at DOD Bookkeeping, which received an $11 million penalty last week, received as much as 40 per cent of their remuneration via a bonus when clients purchased a property via a SMSF, according to court documents.
Private wealth manager Escala Partners has launched an end-to-end investment platform to strengthen its alternatives capability as clients seek sophisticated vehicles.
Perpetual Wealth Management has hired two advisers from Ord Minnett as part of five hires, just weeks after the rival firm announced it had picked up six from Perpetual Private.
ASIC has cancelled the AFSL of a Perth financial services firm following payments to its clients by the Compensation Scheme of Last Resort after a failed managed investment scheme.