Your super fund took a big hit last month
Wednesday, April 23, 2008/
The string of dismal returns from Australia’s biggest superannuation funds has continued, with funds losing a further 0.81% in March. This takes total losses since the start of July 2007 to 4.7%.
According to the data from super research company SuperRatings, March represented the fourth consecutive month of losses for the average Australian’s balanced super option. According to SuperRatings managing director Jeff Bresnahan, the likelihood of positive returns in April will not prevent nearly all balanced options showing negative returns at year end, some for the first time in their 20-year history.
But super fund members should keep things in perspective. Returns over three, five and seven years are still quite strong, the average fund producing returns of 9.3% a year over the last three years and a whopping 11.2% over the last five years.
With global sharemarkets taking a beating in the last 12 months, super fund members whose portfolios favour fixed interest and cash investments have done best; the average cash option fund is up 5.2% in the last 12 months, compared with a 6.3% decline for investors in the average Australian shares option fund. But over the last five years, the cash option is up just 4.8%, compared with a gain of 16.9% for the Australia shares option.
The message – super fund members always need to take a long-term view.
Be honest about your situation: How vulnerability helps businesses thrive Sue Parker DARE Group founder
Own it: The 10 things you need to do to manage your personal brand Lisa Stephenson Who Am I Projects founder
Six invaluable lessons: What 20 years in aged care taught me about being an entrepreneur Natasha Chadwick NewDirection Care founder
An entrepreneurial superpower: Eight tips to help develop resilience Adala Bolto ZADI Training co-founder
Going through a lull? Five areas you should invest in when sales drop Tamara Alaveras and Sonia Majkic 3 Phase Marketing co-founders
Stop telling us how busy you are, it's boring and charmless Ian Whitworth Scene Change co-founder
Blandification™ and the state of modern branding Jeffrey Oley The Offices co-founder
Why you should find the right role for the right person — not the other way around Bruce Stronge Outfit founder