Superannuation in the median balanced option returned 0.2% in December 2015, with a 5.6% gain over the 2015 calendar year, according to SuperRatings.
“While this sits well below the 16.3% and 8.1% returns seen in 2013 and 2014, it is a solid result given volatile market conditions,” said SuperRatings
International Shares were a “key driver of returns in 2015”, with the median option returning 8.8%. This was helped by the 10.9% fall in the Australian Dollar vs the US Dollar.
“Australian Shares experienced modest growth in 2015, with the ASX200 Accumulation Index increasing by 2.6%.”
Australian Listed Property rose by 14.4% over the year, cash returned 2.0% and fixed interest 1.6%.
“Subdued levels of growth across most major economies and volatile investment markets have made 2015 a challenging year for super funds, with returns across the main growth asset classes sitting well below what we have experienced in previous years” said SuperRatings founder Jeff Bresnahan.
“Despite tough market conditions, diversification and a falling Australian Dollar have helped superannuation funds cushion the bumpy ride for members and produce a fourth consecutive positive calendar year return” he said.
According to SuperRatings the Median Balanced Option for Accumulation accounts has returned 5.6% a year over a rolling 10 year period to 31 December 2015.
But, “while long-term performance numbers generally remain strong, SuperRatings continues to observe significant variation in returns between funds.”
SuperRatings says $100,000 in the best performing balanced option over the last 10 years would now be worth $195,582. Whereas $100,000 in the worst balanced option would now be worth $131,417 – $64,165 less. The median option would be worth $169,797.
SuperRatings does warn that “past performance is not a reliable indicator of future performance.”
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