POWERED BY MOMENTUM MEDIA
Global shares boost super fund returns
Super funds bounced back in October thanks to international shares, helping offset losses from August and September, according to SuperRatings.
Super fund's median balanced option was up three per cent for the month, but currency movements as the Australian dollar increased in value against the US dollar, wiped out some of the international share market gains.
Median returns for the financial year-to-date sat at 1.3 per cent, the research house said.
SuperRatings founder, Jeff Bresnahan, said: "Strong performances in overseas and local markets made October a highly successful month for super funds, allowing members to regain most of their losses experienced in August and September".
"Despite the strong bounce back, negative market conditions have returned with falls across several key asset classes recently. We estimate the median balanced option to be down 0.6 per cent for November, to date," he said.
Bresnahan noted super funds would continue to face challenging market conditions in the short term as there would be no let up on ongoing financial volatility.
To date, the calendar year proved challenging for most funds with negative returns in four out of the 10 months, SuperRatings said.
The median balanced option return for 2015 to date was 5.5 per cent, only slightly below the 5.7 per cent the year before. However, both years were well below the 13.7 per cent to date in 2013.
Recommended for you
The Super Members Council has outlined a bold reform plan to boost productivity, lift retirement savings, and unlock super’s full potential.
Women beginning their careers in 2025 could retire with hundreds of thousands of dollars more in super due to the 12 per cent super guarantee rate, HESTA modelling shows.
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
