POWERED BY MOMENTUM MEDIA
Super industry holds lesson for post-GFC world
Superannuation returns can provide lessons for dealing with crises, with the sector’s performance since the Global Financial Crisis showing the importance of taking a long-term view even when problems such as the GFC hit, SuperRatings said.
Data from the research house showed that balances of $100,000 in a balanced superannuation option at the end of August 2008, just before the GFC hit, would have grown to $193,887 by now for members who stayed in that option. Those who panicked and swapped to capital stable options, however, would have far smaller balances now of $164,277.
Those in growth options would have seen even more growth, with that original $100,000 balance increasing to $201,209.
“The failure of Lehman Brothers ushered in a period of intense crisis for the global financial markets, including in Australia,” SuperRatings executive director, Kirby Rappell, said.
“We hoped then that the market crash would prove cyclical and that we would see a relatively quick recovery, but of course that did not happen.
“But even in the face of the Great Recession, Australia’s superannuation funds have shown us that taking a long-term view and sticking with your investment strategy pays off. Super funds held their nerve and refrained from making rash decisions, and members continue to reap the benefits. After 10 years the GFC looks more like a speed hump.”
The top-performing balanced fund over the decade following August 2008 was CareSuper’s balanced option, which returned 7.6 per cent pa. The next best were the Equip MyFuture Balanced Growth, HOSTPLUS Balanced, AustralianSuper Balanced, UniSuper Accum (1) Balanced, and Rest Core Strategy options, all delivering members growth of 7.5 per cent pa.
Recommended for you
Private market assets in super have surged, while private debt recorded the fastest growth among all investment types.
The equities investor has launched a new long-short fund seeded by UniSuper, targeting alpha from ASX 300 equities using AI insights.
The fund has strengthened efforts to boost gender diversity, targeting 40:40:20 balance across its investment teams by 2030.
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
