Asset allocation diversity is helping insulate Australian superannuation fund members from current volatility, according to the latest data from SuperRatings.
The data show that superannuation returns continue to ride the volatility roller-coaster and that while super returns moved back into positive territory in July after the negativity of June, they are destined to be below par again in August.
The SuperRatings data pointed to the median balanced fund being up 2.2 per cent in July, representing a turnaround from the two per cent fall in August.
But the ratings house noted that investment markets continued to be extremely volatile with losses in August, to date, already wiping out the July gains.
SuperRatings founder, Jeff Bresnahan said the markets took a welcome upturn in July, with rising local and international shares adding strong returns for most super funds but the relief had been short-lived.
"So far in August we estimate the median Balanced Fund to be down 2.4 per cent, cancelling out the healthy July result," he said.
"Just what the remainder of the month has in store will soon unfold, however, the diversification of most super options is keeping most people insulated against heavier losses in several key asset classes."
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
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