Equities exposures hurt superannuation funds amid volatility
Self Managed Superannuation Fund (SMSF) investors with higher than average exposure to equities will have started the new financial year in negative territory.
That is the bottom line of data released by two specialist superannuation fund research and ratings houses - Chant West and SuperRatings.
According to Chant West principal, Warren Chant the median growth superannuation returned minus 1.5 per cent in July on the back of the declining value of both domestic and international equities - bringing back memories of the global financial crisis.
At the same time, Super Ratings managing director, Jeff Bresnahan said the median balanced fund had fallen by 1.4 per cent for the month and pointed out that this had occurred before the sharp equity market sell-off began in August.
Further, Bresnahan said the extreme bout of market volatility was not expected to go away any time soon.
Like Chant, Bresnahan said the greatest pain had been felt by those funds with greatest exposure to equities.
The confirmation of the by superannuation funds into red during July has come amid other data suggesting many investors have sought to gain greater exposures to cash products, including term deposits.
AUTHOR
Mike Taylor
Recommended for you
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
