SEARCH
Australian superannuation funds managed to deliver strong returns throughout 2016 despite a number of challenges and “nosebleeds”, according to SuperRatings.
The median balanced fund option is on track to deliver an estimated 7.2 per cent for the year, the research company said, marking the sector’s fifth consecutive year of positive returns.
While this is marginally below the 7.7 per cent per annum average seen over the last seven years, it remains above the 5.2 per cent per annum average achieved over the last 10 years, SuperRatings said, adding that longer-term returns still sit “well above most funds’ CPI targets”.
SuperRatings chair Jeff Bresnahan described 2016 as “a year of extremes”, noting that funds struggled in the early months of the year, with many posting “significant losses” before recovering as markets stabilised.
“Of course, we then had Brexit and the corresponding rebound, a bearish October ahead of the US election, and then a big lift to end the year, led by equities,” he said.
“While volatility may have induced a few nosebleeds, funds have generally had a strong positive year, ending the calendar year above their long-term objectives.”
Read more:
ANZ sells stake in Chinese bank
Fall in investor confidence through December
Australia’s economic growth sluggish
US dollar set for a strong year
Stimulate new ideas. Stimulate new thinking. Top up your CPD and hear from industry experts with InvestorDaily’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD. Explore the knowledge centre Knowledge Centre now.
The central bank has said it would be “premature” to consider ceasing its bond-buying program as the completion date for its second roun...
A new report from the Australian Competition and Consumer Commission (ACCC) has revealed the extent to which consumers are falling for scams...
Despite the Australian economy’s ongoing rapid recovery, an Australian equity head believes GDP growth will “fade” in 2022. ...
Get notifications in real-time for staying up to date with content that matters to you.
Read More
