Latest Returns - March 2017

SUPER FUNDS GAIN AS RISK OUTLOOK EASES.

Superannuation fund returns were driven higher in March, boosted by continued gains from the Australian share market. The median balanced option posted a return of 1.5%, while the return for Q1 2017 was 2.5%, weighed down by a small negative return in January.

Global markets have generated strong returns on the back of improving economic fundamentals and consistent signs of inflation, which have generally fed back into Australian shares. Overall, the balance of risk appears to be improving, but while investors have every reason to be upbeat, they should not expect clear skies for the rest of the year. “The rotation into equities has been a consistent theme since October last year, with yields moving off historic lows and shares pushing ever higher,” said SuperRatings Chairman Jeff Bresnahan.

“The main threats to fundamentals come from the interrelated issues of low wage growth and rising house prices, especially in the Melbourne and Sydney markets,” said Mr Bresnahan. “The RBA has noted that households do not appear to be under stress because of repayments, but we may be due for a correction in these markets.”

Median superannuation fund Balanced Option returns as at 31 March 2017 are as follows:


Accumulation Returns
The Month of March 2017+1.5%
Financial Year return to 31 March 2017+8.6% pa
Rolling 1 year return to 31 March 2017+11.2% pa
Rolling 3 year return to 31 March 2017+7.6% pa
Rolling 5 year return to 31 March 2017+9.2% pa
Rolling 7 year return to 31 March 2017+7.6% pa
Rolling 10 year return to 31 March 2017+5.2% pa

  • Median Balanced Option refers to "balanced" options with exposure to growth style assets of between 60%-76%. Approximately 70% to 80% of Australians in our major super funds are invested in their funds' default investment option which in most cases is the balanced investment option. All returns are expressed net of all fees and taxes.