POWERED BY MOMENTUM MEDIA
Super returns fall in FY22
The median balanced option for the financial year ending June 2022 has recorded a -3.3% fall, the fifth time financial year returns have been negative since the inception of superannuation in 1992.
Contextualising the end of financial year results, SuperRatings noted that despite market volatility due to ongoing supply challenges and the war in Ukraine, $1 of super invested in 1992 in the median balanced option would be estimated to be worth $7.67 today.
Executive director of SuperRatings, Kirby Rappell, said: “This was the fifth negative return for balanced options we have seen since the introduction of super 30 years ago. However, it follows the second highest annual return of 17.8% in 2021. So, when you look at it over the last two years, members’ balances are up.
“Super is a long-term investment and funds continue to provide strong long-term returns on average and have outperformed the typical CPI+3.0% investment objective. When you consider that share markets are down around 10-12% across Australia and globally, super funds have done well to prevent some of the steep falls that we have seen from being passed through to members’ super account balances.”
Meanwhile, the median balanced option declined by an estimated -3.4% over June, while the median growth option reduced by an estimated -4.4%. The capital stable options, which hold more traditionally defensive assets such as cash and bonds, fell by an estimated -1.7%.
Recommended for you
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
59.27 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
32.82 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
32.44 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.01 3 y p.a(%)
Add new comment