Super returns down 6.4 per cent
Jeff Bresnahan
Superannuation ratings house SuperRatings has confirmed the grim news on investment returns for fund members, releasing data today suggesting that the average balanced style portfolio has suffered a 6.4 per cent loss over the last financial year.
The data, released by SuperRatings managing director Jeff Bresnahan, served to confirm predictions the company had been making in the media over the past few weeks.
However, Bresnahan said that putting aside the 2007-08 returns, the news was not all bad for superannuation fund members in circumstances where members in balanced option investments had still seen their superannuation assets appreciate by over 60 per cent in the past five years on investment performance alone.
“To put this into some perspective, most funds will have stated that their objective was for growth of around 40 per cent over the same period, representing CPI plus 3.5 per cent,” he said.
Bresnahan said there was no cause for alarm at the negative results and that for a balanced option, a negative return could be expected on average once every six years.
AUTHOR
Mike Taylor
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
