Despite geopolitical tensions globally making investors nervous, superannuation funds have delivered modest positive returns in May of 0.5 per cent for the median balanced option, according to SuperRatings.
The research house said that super funds did struggle from global uncertainty despite remaining above the line, as events such as President Trump’s on-again, off-again trade war with China left markets frustrated.
“May was a challenging month for super, with global factors playing a significant role,” SuperRatings chief executive, Kirby Rappell said.
“The ongoing tariff saga between the US and China, along with talks between President Trump and North Korean leader Kim Jong-Un seemed to wrongfoot markets in May, and super funds were not immune from the uncertainty.”
Super funds do not need to lose all hope, however. Rappell said that with returns for the 2018 financial year already at 8.4 per cent, double-digit returns for the year were still “entirely possible” despite the above.
BlackRock boss Larry Fink praised Australia’s superannuation system in his annual chairman’s letter.
The prudential regulator has announced it will publish new expenditure data of superannuation funds, providing details on expenses like advice, director remuneration, and payments to unions.
Affirming the UK’s growing attractiveness as an investment destination, a number of Australia’s largest investors recently joined the UK Foreign Secretary for an exclusive briefing in Canberra to discuss further opportunities for trade and growth.
The specialist superannuation law advisory practice is set to wind up, with managing partner Jonathan Steffanoni planning to bring a new offering to market.
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