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
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
