POWERED BY MOMENTUM MEDIA
AMP's Oliver cautions against cash
Superannuation fund investors should accept that periods of negative returns in super funds are not nice but are normal, according to AMP Capital Investors chief economist Shane Oliver.
In his latest analysis issued this week, Oliver acknowledges that the slump in investment markets has seen super funds post negative returns for the second year in succession but argues that periods of negative returns from growth assets are normal and are the price paid for higher long-term returns.
“Reacting to the current turmoil by moving to cash will lock in losses and only lead to lower long-term returns," Oliver’s analysis said.
He said the good news was that superannuation returns had started to improve over the last few months, reflecting the improvement in financial markets.
“With global financial conditions now on the mend and increasing signs of a looming economic recovery, a further improvement is looking likely,” Oliver said.
AUTHOR
Mike Taylor
Recommended for you
Rest Super remains “fully committed” to equities, even as it anticipates higher market volatility than experienced in previous decades.
Australian superannuation funds have again generated strong returns for FY25, with the median growth fund returning 10.5 per cent for the year, according to Chant West.
The US remains a standout destination for innovation and commercialisation, according to MLC Asset Management chief investment officer Dan Farmer.
Hostplus’ MySuper Balanced option delivered significantly stronger returns in 2024–25, bouncing back from the previous year when its cautious stance on listed markets came at a cost to members.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
