Powered by MOMENTUM MEDIA
subscribe to our newsletter sign up

Go global for superannuation returns: SuperRatings

Global, superannuations, SuperRatings, global equities

Savers with allocations to global equities will be smiling, while local shares stumble in the wake of the royal commission, the latest SuperRatings data has shown.

“Super funds have ridden a wave of positive sentiment over the past few months, and this has been reinforced by strong earnings growth, especially in the US and Europe,” said SuperRatings CEO Kirby Rappell.

“Despite the imminent threats to the market rally, from trade wars to Brexit to the emerging economic crisis in Turkey, nothing seems to be putting a dent in confidence.”

Closer to home, however, share performance has slid, thanks in part to the financial sector’s royal commission woes.

SuperRatings said while Australian shares continued building throughout July, global shares provided the fuel for strong returns.

The median balanced option returns to 31 July 2018 were 10.3 per cent for the rolling one-year return for accumulation funds and 11.4 per cent for pension funds.

While the median balanced option has returned 6.7 per cent over the last 10 years, meaning a $100,000 balance a decade ago would now be $183,158, these returns have been impacted by the global financial crisis.

“Once these acute negative returns fall out of the 10-year return period, we will start to see a noticeable lift, which will provide a truer picture of the health and stability of super funds over the long term,” Mr Rappell said.

Go global for superannuation returns: SuperRatings
Global, superannuations, SuperRatings, global equities
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Phil - I agree: this is a lawyer looking to promote their business. I am a broker & former bank lending manager, but in both positions , only cross.......
MMMR - This article is about promoting Binding Financial Agreements above all else. I’m just not sure why lending needs to be the vehicle to create the.......
RobR - I am a broker and a former bank manager. As a banker we were told /trained /instructed to cross secure everything possible to "entangle" the client to.......
MT - Banks love to cross-collateralise and tie up clients. Brokers spend their time unwinding cross-collateralisation. A broker will always recommend.......