Superannuation fund returns appear almost guaranteed to end their eighth successive financial year in positive territory, according to the latest analysis released by SuperRatings.
The superannuation research and ratings house said that returns in April had been boosted by international shares and a fall in the Australian dollar resulting in the median balanced option returning 1.5 per cent.
SuperRatings noted that this was on top of the 1.5 per cent return recorded in March, bringing financial year to date returns to 10 per cent with the likelihood that May would also end with returns in positive territory.
Commenting on the data, SuperRatings chairman, Jeff Bresnahan said the economic indicators had remained robust, although weaker inflation figures might be of some concern to investors as well as the central banks.
He noted that cash and fixed interest returns remained meagre, sitting at 1.4 per cent and 1.3 per cent for the financial year to date respectively, with Australian and global shares having been the star performers for the financial year thus far with returns of 15.3 per cent and 15.6 per cent respectively.
“It would be a great result to achieve a double-digit return for the financial year, but we still have a bit longer to go,” Bresnahan said.
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
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.
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