Super fund returns continue to defy expectations
Superannuation fund returns continued to defy precedent, with average returns this month taking the annual returns up to October 2006 to 13.8 per cent, up from 10.7 per cent for the same period last year, according to figures from SuperRatings.
The strongest performing asset class over the 12 months to October 31, 2006, was Australian shares, with an average return of 28 per cent, followed closely by property on 26.9 per cent, growth on 22 per cent, international shares on 21.8 per cent and balanced on 19 per cent.
“No matter how you look at it, most fund members are experiencing returns that have not been seen for a very long time,” said SuperRatings managing director Jeff Bresnahan.
He noted the master trust median is now in line with the not-for-profit median over 12 months, with master trusts now comprising half of the top 10 on the 12-month performance table.
“If listed markets continue to outperform it will be interesting to see what further inroads the commercial sector can make given their asset allocation bias in particular international shares and listed property assets.”
The continued strong run of super funds means they have now delivered double-digit returns over both the one and three-year average and are approaching the same over five years.
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