(June-2004) April gives further sniff of double digit returns
Indications remain strong that many superannuation funds will finish the year with double digit returns, according to the latest data released by Sydney-based research house, SuperRatings.
SuperRatings chief executive officer Jeff Bresnahan says that while a number of superannuation funds have been hit by the declining fortunes of the Australian dollar over the past three months, the march towards double digit returns continued in April, with the SuperRatings Balanced Option Index showing a return of 0.4 per cent for the month.
He says much of the growth was attributable to the performance of international equities which were up 2.8 per cent during April, although there had been some moderation through the early part of May.
Bresnahan says that over 40 per cent of Australia’s major superannuation funds’ balanced investment options have now reached what he describes as “the magical 10 per cent level” for the financial year.
He says that leading the way has been IOOF Max’s balanced option with a return of 11.6 per cent, followed by the $2.3 billion EquipSuper (11.4 per cent) and the $4.5 billion Sunsuper.
The SuperRatings data shows not for profit funds continuing to dominate, taking out seven of the top 10 spots.
Bresnahan says that on average, not for profit funds have reached 10 per cent for the 10 months to April 30, compared to commercial master trusts which have reached 8.9 per cent.
AUTHOR
Mike Taylor
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