POWERED BY MOMENTUM MEDIA
Super funds deliver modest May returns
Despite geopolitical tensions globally making investors nervous, superannuation funds have delivered modest positive returns in May of 0.5 per cent for the median balanced option, according to SuperRatings.
The research house said that super funds did struggle from global uncertainty despite remaining above the line, as events such as President Trump’s on-again, off-again trade war with China left markets frustrated.
“May was a challenging month for super, with global factors playing a significant role,” SuperRatings chief executive, Kirby Rappell said.
“The ongoing tariff saga between the US and China, along with talks between President Trump and North Korean leader Kim Jong-Un seemed to wrongfoot markets in May, and super funds were not immune from the uncertainty.”
Super funds do not need to lose all hope, however. Rappell said that with returns for the 2018 financial year already at 8.4 per cent, double-digit returns for the year were still “entirely possible” despite the above.
Recommended for you
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
Big business has joined the chorus of opposition against the proposed Division 296 tax.
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
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
