Super returns won’t hit double digits: Kinetic
Superannuation returns this year will not be at the double-digit levels seen over the past few years, Kinetic Super believes.
The super fund said global economic factors such as interest rates and the Australian dollar would be particularly influential in shaping the outlook for super funds over the coming year.
Kinetic Super's chief investment officer, Paul Kessell, said "this week's US interest rate rise — the first in a decade — signals a new cycle of growth, and comes at a time when the Australian economy is rebalancing from mining-led growth to non-mining and services".
"Kinetic Super invests in both Australia and overseas so the economic environment in the US and elsewhere is very important in determining how investment strategy is set," he said.
"We are cautiously optimistic about the outlook for superannuation returns in 2016, and expect returns to be positive although not at the double-digit levels seen over the past few years."
Kessell said ongoing structural changes within the domestic economy, including the shift from mining-driven growth to tourism, services, and agriculture were positive for the super sector.
Recommended for you
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.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
