Superannuation fund recuperates
Australia's average superannuation fund generated a profit of 10.4 per cent for the year to June, the first gain in three years.
Although the annual return is less than the target set earlier this year, it is well above the long-term average of between 6 and 7 per cent annual profit, according to research company Chant West today.
The recovery, after two years of losses, was credited to a regain in the listed share and property markets.
Activities in listed markets regularly support retail super funds, including master trusts, while industry super funds have fewer listed investments. In effect, retail funds surpassed the not-for-profit industry funds this year.
"After powering along for much of the year, share markets wobbled in the last quarter but even so the median growth fund managed a double-digit return," Chant West director Warren Chant said.
"That's a good result and obviously a welcome relief after two negative years,'' he said.
The "growth" investment option, as measured by Chant West, is comparable to the "balanced" description used by super funds and covers a range of growth assets of 60 to 80 per cent.
About 80 per cent of superannuation funds are in a balanced option.
Chant West, however, said that the healthiest investment choice was international listed property, which returned 39 per cent for the year to June 2010. Listed Australian property follows with 20.3 per cent and a tie between international shares and international bonds both at 11.5 per cent comes next.