Superannuation returns start 2011-12 in the red
Australian superannuation fund returns have started the new financial year in the red.
That is the bottom line of the latest data from Chant West, which has reported that returns for the median growth superannuation fund fell 1.5 per cent in July on the back of weak share markets, with the Australian market down 3.8 per cent for the month and with international equities falling 2.6 per cent in hedged terms.
Chant West principal Warren Chant said share markets had been the main drivers for growth fund performance, and reacted sharply to news whether it was good or bad.
"In the early weeks of the new financial year we've seen share markets take a beating, bringing back grim memories of the global financial crisis," he said.
Chant said for the financial year to 19 August, Australian and international shares were down about 10.5 per cent and 15.5 per cent respectively, on the back of concerns about the debt crisis in Europe and the US.
"We estimate that the median growth fund is down about 5.5 for this period," he said.
Chant said industry funds, with their lower weighting to listed markets, returned minus 1.5 per cent and therefore outperformed master trusts which, on average, returned minus 1.9 per cent in July.
AUTHOR
Mike Taylor
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