Australian super funds got a much needed boost from international shares and listed property, with the asset classes helping to offset a mediocre year across other markets, says SuperRatings.
According to SuperRatings, the international share market returned 19.2 per cent for the year to June 2015 with listed property up 20.2 per cent, contributing greatly to the superannuation sector.
SuperRatings founder Jeff Bresnahan said: “Australian super funds earned a bigger boost from overseas shares because the falling Australian dollar further magnified international earnings.”
SuperRatings found that not-for-profit funds dominated the top ten balanced funds this year, with the Commonwealth Superannuation Corporation's Public Sector Superannuation Accumulation Plan taking out the top spot.
“It was also pleasing to note two small funds made the highest rankings this year, proving that size doesn’t matter when it comes to strong performance,” Mr Bresnahan said.
Regarding the overall highest performing funds, OnePath Integra’s Global Shares Option took first place.
“The overall highest performing super fund options this year were international shares options,” said Mr Bresnahan.
All of the highest performing funds this year achieved returns well above the 20 per cent mark.
“Annual returns of up to 24 per cent are some of the highest performances we’ve seen for any super funds,” Mr Bresnahan said.
"Most of the top overall performers this year have also produced consistent results at this level for the past three years.”
However, SuperRatings indicated that on a long-term basis, many funds focused on international shares have produced annual returns of less than five per cent over a 10-year period.
SuperRatings attributes this to the impact of the global financial crisis and the high risk nature of such investments.
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