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Volatile investment markets give super funds a bumpy ride
Positive double-digit returns are expected for superannuation funds by the end of the financial year, according to SuperRatings.
Super funds produced a positive return for the month of May back from negative returns in April thanks to rising investment markets, the research house found.
SuperRatings founder, Jeff Bresnahan, said the inconsistency is on the back of volatile investment markets.
"Declining share markets and ongoing concern about global economic growth have taken a toll on financial investment markets during early June," Bresnahan said.
"However, most super funds are still set to produce a strong return for the year to June 30, if not a double-digit percentage return."
SuperRatings' analysis found nervous investors sold down Australian shares in the first half of June, following uncertainty about demand for Australian exports by overseas companies and slower internal demand by local companies and households.
"The financial year is expected to be the sixth consecutive year of profits for super funds, reinforcing the ability of long-term strategies to outride most investment bumps," Bresnahan said.
The median Balanced pension fund returned one per cent for the month of May.
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The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
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3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
73.88 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
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35.96 3 y p.a(%)
5
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32.23 3 y p.a(%)
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