Superannuation fund performance hindered by new concerns for Europe.
The median growth superannuation fund (61 to 80 per cent in growth assets) was up for the fourth consecutive month despite fears over economic stability in Greece and growing concerns that the country may leave the euro zone.
That's according to the latest research from Chant West, which found that as at 30 April superannuation funds in this particular growth category returned 0.4 per cent month-on-month. Returns also rose 2.5 per cent for the full financial year to April 30.
"However, in the first half of May we have seen world markets slide on renewed fears that Greece may need to default on its debt and exit the euro zone," Chant West director Warren Chant said.
He said he estimated the median growth fund is down 3 per cent so far in May, which brings the financial year-to-date return to -0.5 per cent.
The report also found that high growth superannuation funds (81 to 100 per cent in growth assets) returned 0.2 per cent from the end of March to the end of April, and 1.6 per cent for the full financial year to April 30.
Meanwhile, more conservative funds (21 to 40 per cent in growth assets) returned 0.6 per cent month-on-month and 4.3 per cent over the past 12 months.
Chant said the performance of conservative funds reflects "the patchy performance of shares against bonds, which have risen in value on lower interest rates".
Research from SuperRatings has also pointed to the deteriorating situation in Europe as a major influence on the performance of the SR50 Balanced (60 to 70 per cent) Index as at 30 April.
While the three months to the end of April saw returns on Australian balanced super options increase by 3.6 per cent, SuperRatings stated that it estimates losses since 1 May at around 3.2 per cent.
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.
