Median balanced option post solid 2015 returns

Given volatile market conditions, the median balanced option's return of 5.6 per cent for the 2015 calendar year was a solid result, according to SuperRatings.

The research house found MTAA Super — My AutoSuper was the best performing balanced option at 9.5 per cent. This was followed by BUSSW — Balanced Growth (8.6 per cent), and UniSuper — Balanced and AustralianSuper — Balanced (both at 7.7 per cent).

SuperRatings founder, Jeff Bresnahan, said "Despite tough market conditions, diversification and a falling Australian dollar have helped superannuation funds cushion the bumpy ride for members and produce a fourth consecutive positive calendar year return".

SuperRatings said international shares were the key driver of returns, with the median international shares option increasing by 8.8 per cent.

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Australian listed property was the best performing asset class, rising 14.4 per cent for the year, while returns on cash remained low with the median cash option increasing by two per cent. Fixed interest returns were even more modest with a median 1.6 per cent return.

"Subdued levels of growth across most major economies and volatile investment markets have made 2015 a challenging year for super funds, with returns across the main growth asset classes sitting well below what we have experienced in previous years," he said.

However, despite the solid end to 2015, the turmoil in Chinese markets had Australian markets experiencing sharp falls with the ASX200 Index down 7.4 per cent during the month of January 2016 so far.

"While balanced options have experienced reasonable losses in January, which have wiped out most of the 2015 calendar year return, these declines remain well below those experienced across share markets, once again highlighting the benefits of diversification across asset classes within balanced options," Bresnahan said.