The current downturn in superannuation returns is worse than anything previously seen by ratings houses that have been around long enough to have experienced previous slumps, according to Intech Investments.
Looking at survey results for February, Intech said the median growth manager had recorded six consecutive months of negative growth, averaging minus 20.4 per cent for the six months to February.
It said this figure was marginally worse than returns for the six months following the 1987 stock market crash, when the Super Survey data had shown the median growth manager returned minus 19.6 per cent for the six months to February 1988.
The Intech analysis said that while the recent rally on markets would improve the prospects for March 2009, January and February were the poorest starts to the calendar year since the Super Survey began in 1984.
“While some might have imagined past downturns were comparative, the Super Survey reveals the start of 1988 was a significantly better period for growth managers, as they returned 0.4 per cent for January and February, 1988.”
According to the Intech data, the best performing high growth fund for the six months to the end of February was the CBUS Core Strategy with a return of minus 15.4 per cent, HESTA Core with minus 16.2 per cent and REST High Growth with minus 19.8 per cent.
Among the funds with moderate growth settings, the best performing funds were Austsafe Capital Stable with a return of minus 10.5 per cent, Asgard SMA — Moderate with a return of minus 10.8 per cent, and STC Balanced with a return of minus 10.9 per cent.
For funds with a conservative setting, the top three were Equipsuper with a return of minus 3.7 per cent, ING Capital Stable with minus 5 per cent and CBUS Conservative with minus 5 per cent.
