POWERED BY MOMENTUM MEDIA
Super returns fall in FY22
The median balanced option for the financial year ending June 2022 has recorded a -3.3% fall, the fifth time financial year returns have been negative since the inception of superannuation in 1992.
Contextualising the end of financial year results, SuperRatings noted that despite market volatility due to ongoing supply challenges and the war in Ukraine, $1 of super invested in 1992 in the median balanced option would be estimated to be worth $7.67 today.
Executive director of SuperRatings, Kirby Rappell, said: “This was the fifth negative return for balanced options we have seen since the introduction of super 30 years ago. However, it follows the second highest annual return of 17.8% in 2021. So, when you look at it over the last two years, members’ balances are up.
“Super is a long-term investment and funds continue to provide strong long-term returns on average and have outperformed the typical CPI+3.0% investment objective. When you consider that share markets are down around 10-12% across Australia and globally, super funds have done well to prevent some of the steep falls that we have seen from being passed through to members’ super account balances.”
Meanwhile, the median balanced option declined by an estimated -3.4% over June, while the median growth option reduced by an estimated -4.4%. The capital stable options, which hold more traditionally defensive assets such as cash and bonds, fell by an estimated -1.7%.
Recommended for you
Australia’s corporate regulator has been told it must quickly modernise its oversight of private markets, after being caught off guard by the complexity, size, and opacity of the asset class now dominating institutional portfolios.
ASIC chair Joe Longo has delivered a blunt warning to superannuation trustees, cautioning that board-level ignorance of member complaints and internal failings will not be tolerated and could trigger enforcement action.
ART has cautioned regulators against imposing overlapping obligations on superannuation funds already operating under APRA’s comprehensive framework, saying that additional oversight should be “carefully targeted to address potential gaps in other parts of the market”.
The super fund has appointed Simone Van Veen as chief member officer.
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(%)
