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Why super represented a solid investment in 2019
Superannuation continues to be a solid investment option according to the latest data released by the Australian Prudential Regulation Authority (APRA) which has revealed the annual industry-wide rate of return for the year ending December, 2019, was 13.8%.
The data, contained within APRA’s December quarter release, revealed the five-year average annual rate of return to December 2019 was 7.1%
The regulator’s data revealed that over the December quarter, total assets increased by 1.7% or $36.2 billion to $2.2 trillion, and that as at the end of the period 51.4% of the $1.9 trillion investments were invested in equities, with 25.3% in international listed equities, 22% in Australian equities and 4.1% in unlisted equities.
It said fixed income and cash investments accounted for 30.9% of investments, with 21.3% in fixed income and 9.5% in cash, while property and infrastructure accounted for 14.3% of investments while other assets including hedge funds and commodities accounted for 3.4%.
The data revealed that industry funds had amongst the lowest allocations to fixed income and cash while retail funds had a higher exposure to equities.
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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
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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(%)
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