Super funds beat odds, make strong gains
The median balanced superannuation fund made a 0.6 per cent gain during March notwithstanding a tough month on most markets, although it was down from February three per cent jump, SuperRatings data showed.
The March return comes despite a 0.1 per cent fall in the ASX200 Accumulation Index and a fall in international equities, with the MSCI World ex-Australia Net TR Index recording a 1.5 per cent fall in March.
"Despite falls in popular growth assets, most super funds still produced a positive return, highlighting the benefits of a diversified portfolio," SuperRatings founder Jeff Bresnahan said.
"Despite uncertainty about Australian and global growth, super funds have enjoyed a strong financial year to date. Funds are well positioned to provide members with another year of solid returns" he said.
The March result has contributed to the biggest quarterly return over the three years to 31 March, with the media balanced option returning 5.7 per cent for the March quarter.
The financial year-to-date return is at 10.8 per cent, while on a rolling 12-month basis, the median return is 13.1 per cent.
Australian shares played a big role in the returns, with the ASX200 Accumulation Index going up 10.3 per cent during the past quarter. The MSCI World Ex-Australia NET TR Index was up 2.3 per cent during the quarter.
The median balanced fund, with exposure to growth style assets of between 60 and 76 per cent, returned 5.7 per cent over the March quarter, while the median pension balanced fund returned 6.3 per cent.
The median balanced option returned six per cent annually during the past seven years despite the global financial crisis, Bresnahan said.
AUTHOR
Malavika Santhebennur
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