POWERED BY MOMENTUM MEDIA
Cash disappoints members post-GFC
Super funds members who switched into cash options following the global financial crisis (GFC) may have missed out on significant returns gained since then.
The performance of super funds this year has increased over 12 million Australians' retirement savings by more than 15 per cent, according to Super Ratings.
A -0.6 per cent drop in earnings over June could not wipe out the 10 months of positive returns over the year which resulted in a 14.7 per cent median return for balanced funds — where 70 per cent of members are invested.
Growth assets buoyed performance as the median superannuation Australian Shares option returned 21.1 per cent for the financial year while funds' International Shares option recorded a 21.6 per cent gain, in part due to a falling Australian dollar.
It is the highest result since the GFC and the third-highest result ever, according to Super Ratings founder Jeff Bresnahan.
"Some four years after the lows of the GFC in February 2009, balanced options have now rebounded by 47 per cent," Bresnahan said, comparing this to 17 per cent for cash options over the same time period.
"A member who made the decision to switch into a cash allocation during the depths of the GFC would have missed out on the significant rebound that has occurred since."
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
New research has shown that investing in alternative assets and using active management has, to this point, delivered strong results for Australian super funds.
Australia’s $4 trillion superannuation industry is fundamentally reshaping the nation’s external accounts, setting the stage for a more sustainable current account surplus despite weaker commodity markets.
Rest has expanded its portfolio of renewable energy infrastructure by supporting a Victorian solar farm and battery project.
Economic growth was weaker than expected, once again highlighting an economy largely sustained by population growth and government spending.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
36.96 3 y p.a(%)
3
GAM LSA Private Shares AU I
34.22 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
VanEck Video Gaming and eSports ETF (AU)
28.89 3 y p.a(%)
