POWERED BY MOMENTUM MEDIA
Super funds suffer second straight month of decline
With volatility and political uncertainty hitting the market hard recently, superannuation members have suffered their second straight month of negative returns.
SuperRatings’ latest data showed a decline of 3.1 per cent in October for members in median balanced options, with those in medium growth options being hit even harder with declines of 4.1 per cent for the month and -1.5 per cent for the FYTD.
Those seeking diversity by adding international equities to their Australian share options were punished, with the median international shares option declining 5.8 per cent for the month, 0.1 percentage point more than the straight Aussie option.
International options performed better for the FYTD, however, declining 1.1 per cent as opposed to 4.4 per cent for the Australian option, reflecting the divergence in domestic and international markets in recent months.
“The market rally gave way to a rolling bear market in October, and despite an attempted recovery, this month remains under significant pressure,” SuperRatings executive director, Kirby Rappell, said.
“Investors are concerned that earnings momentum is slowing and that valuations, especially in some growth sectors, are too high. Add to this significant uncertainty globally, whether it’s renewed trade tensions between China and the US or the continuing Brexit saga in the UK, and it looks like volatility will be a more permanent feature of markets heading into 2019.”
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(%)
