With significant volatility in investment markets, losses in August have already wiped out July’s gains for most super funds, says SuperRatings.
Superannuation returns were up 2.2 per cent in July, but losses in August have already erased last month’s gains.
SuperRatings founder Jeff Bresnahan said: “The markets took a welcome upturn in July, with rising local and international shares adding strong returns for most super funds.”
“However, the relief has been short-lived. So far in August we estimate the median balanced fund to be down 2.4 per cent, cancelling out the healthy July result.
“Just what the remainder of the month has in store will soon unfold, however, the diversification of most super options is keeping most people insulated against heavier losses in several key asset classes,” Mr Bresnahan said.
To date in August, Australian shares have fallen around 6.0 per cent, with the listed property market down 2.9 per cent.
However, SuperRatings pointed out that despite recent volatility, the performance of most funds remains above their long-term goals.
The median balanced fund has returned an average of 6.7 per cent per year during the last 10 years. Balanced funds over the past five years have returned 9.6 per cent per annum.
According SuperRatings, these trends are set to improve as the impact of the global financial crisis is gradually worked through.
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