Latest Returns - August 2017

STEADY AS IT GOES FOR SUPER FUNDS.


Investors may have been hoping to start the new financial year with some wind in the sails, but instead it has been steady as she goes. According to SuperRatings’ data, the median balanced option fund return was a modest 0.6% in August, with local shares assisted by a healthier commodities market.

Australian stocks suffered a mixed earnings season and the US market remains on edge, whilst superannuation funds have been focused on managing any breakout in volatility. Over recent months, market volatility fell to historic lows and this is where it remains. With the ongoing uncertainty facing the Korean peninsula, there has been some movement away from US stocks and currency and towards the relative safety of commodities and the European market. In recent years, we have seen most funds recording strong outcomes, although a greater range of returns is expected if volatility increases.

Median superannuation fund Balanced Option returns as at 30 August 2017 are as follows:


Accumulation Returns
Month of August 2017+0.6%
Rolling 1 year return to 30 August 2017+7.7% pa
Rolling 3 year return to 30 August 2017+7.2% pa
Rolling 5 year return to 30 August 2017+9.5% pa
Rolling 7 year return to 30 August 2017+8.2% pa
Rolling 10 year return to 30 August 2017+4.8% 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.