Median balanced superannuation funds will have an annual return of about 15% by the end of the year and this is a result not seen since 2013, according to SuperRatings.
According to SuperRatings, funds had “done a good job” of managing uncertainty brought by global risks and challenging economic conditions.
It said over the past five years the median balanced options returned an estimated 7.9% per annum, compared to 8.7% per annum for growth and 4.9% per annum for capital stable.
The median balanced pension option over 2019 returned an estimate 16.3% year-to-date to the end of November, compared to 19.6% for growth and 9.6% for capital stable.
SuperRatings executive director, Kirby Rappell, said: “It’s been a nervous year for investors, so it’s great to see that super can deliver some much-needed stability and solid returns during this period. There might not be a lot of positive economic news at the moment, but at least super is one story we can all draw some hope from.
“We expect to see an increase in fund mergers in 2020, but it’s important that regulatory responses don’t move us towards a one-size-fits-all approach, which could be detrimental to member outcomes."
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
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