Two key superannuation research and ratings houses — Chant West and SuperRatings — have confirmed that Australian super investors are facing a second consecutive year of double digit negative returns closing out the 2008-09 financial year.
Chant West, looking at the median growth fund, has pointed to negative returns for the 12 months in the order of negative 13.5 per cent, while SuperRatings looking at the median balanced super option is predicting 12-month losses of between negative 10 and 14 per cent.
Both organisations pointed to the fact that the negative results had become unavoidable despite three consecutive months of positive returns recorded between March and May, with the median growth fund returning 1.3 per cent in May, while the median balanced option had returned 1.01 per cent.
They said the positive returns over the past three months had been built on the back of stronger share markets.
SuperRatings, while pointing to the 12-month negative returns of between 10 and 14 per cent, said over five, seven and 10 years returns were still hovering around 5 per cent a year compound growth.
Looking at the financial year outcome, SuperRatings said the best-performing balanced option had lost just 7.75 per cent for the 11 months ended May 31, while the worst had recorded a negative 21.93 per cent.
