Listed equities driving super growth: SuperRatings
Superannuation funds are benefiting from strong returns produced by listed equities, as the sector recorded a second successive year of double-digit growth in the 2013/14 financial year, a report by SuperRatings reveals.
The research found that the media balanced super option delivered a 12.7 per cent return in 2013/14, with Telstra Super providing the best performance of the year with a return of 15.8 per cent.
SuperRatings' founder, Jeff Bresnahan said the data showed that super funds were performing well across the board.
"Over a 22 year period since the introduction of compulsory superannuation, Australian funds have returned 7.2 per cent per annum," he said.
"This is a real positive for members and goes to show that, despite all the peaks and troughs we've seen since 1992, superannuation funds have generally succeeded in providing returns to members of over 3.5 per cent above inflation."
While Bresnahan said that super funds should be commended for their strong performances over the years, he added that there was room for improvement.
"There remains work to be done to ensure members have the best possible chance to achieve their retirement goals," he said.
"There is increasing recognition across the industry that some members have been faced with poorer outcomes due to the timing of their retirement or poorly performing products."
SuperRatings reported that the median superannuation Australian Shares option returned 16.8 per cent for the year, compared to a 17.4 per cent gain in the benchmark S&P/ASX 200 Accumulation Index over the same period.
While the median superannuation international shares option returned 17.6 per cent over the 2013/14 Financial Year, compared to a 20.7 per cent return in the benchmark MSCI World Accumulation Index (in Australian Dollars).
All other asset classes also recorded a positive return in the 12 months to 30 June, with the median superannuation property option returning 9.1 per cent, while the median superannuation diversified fixed interest option returned 5.5 per cent.
AUTHOR
Nicholas O'Donoghue
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