Superannuation fund returns have remained in the black for the first two months of the new financial year, according to Sydney-based research house, SuperRatings.
SuperRatings Chief Executive, Jeff Bresnahan says that while the gains have been moderate, they represent an average 0.4 per cent addition to the median 13.2 per cent return recorded by balanced options last financial year.
However he warns that SuperRatings does not believe that strength of returns recorded by superannuation funds can be replicated this year, albeit that most funds will remain in positive territory.
He says that among the better performers were the 400,000 member Sunsuper and the $1 billion LUCRF with two month aggregate returns after fees of 1.2 per cent — around 0.8 per cent above the SuperRatings index for balanced investment options.
Bresnahan says the median August result of 0.8 per cent more than offset the negative 0.5 per cent recorded in July, meaning that since the beginning of the 2003/2004 financial year, the median return in 11 of the last 14 months has been positive.
He says that while the median return has been 0.8 per cent, around seven of the 44 funds surveyed were in negative territory.
“We have some serial offenders out there who, despite changing market conditions, continue to underperform,” Bresnahan says.
He says this points to the need for Australians to understand how their fund is performing against other funds.
