Super fund returns strong

AUSTRALIAN superannuation fund returns remained in positive territory through August, driven by good returns from both domestic and international equities, according to the latest data released by Sydney-based research house SuperRatings.

According to SuperRatings, the positive equities markets helped add 1.3 per cent to superannuation accounts during August, bringing the average year to date performance to 3.1 per cent.

SuperRatings managing director Jeff Bresnahan said fund performance over the past three years had gone a long way towards eliminating the poor returns recorded in 2001-02 and 2002-03, with the average balanced option investor receiving a return of around 10 per cent a year.

“For those fortunate enough to have selected Australian shares as their option, returns for the three years have averaged 16.4 per cent after all fees and tax,” he said.

Bresnahan said the shorter term numbers were even more impressive, with the average one-year balanced option performance now at 15.8 per cent.

He said Australian share options were no less impressive with an average return of 27.8 per cent.

However, Bresnahan said longer term returns remained static with the average five-year performance of balanced investment options at a more subdued 5.7 per cent a year, which was “pretty much in line with long-term objectives of these types of funds of CPI plus 3.5 per cent”.