Despite the drop in June superannuation funds have delivered a “strong result” for the 2014/15 financial year, according to superannuation research firm SuperRatings.
The ‘median balanced’ super fund investment option returned 9.7% for the 2014/15 financial year, with a -2.1% return for the month of June.
“Rising investment markets have helped produce a strong return for super fund members with the median Balanced Option providing a 1.0 per cent gain during the month of May,” said SuperRatings.
An annual survey of Environmental, Social and Governance (ESG) superannuation investment options by independent research company SuperRatings has found “competitive performance” compared to mainstream investment options.
SuperRatings found that ESG balanced funds returned a median of 11.9% in the 12 months to April 2015, compared to 12.0% for the broader SuperRatings SR50 Balanced Index.
Superannuation funds were “hit by difficult investment conditions,” said SuperRatings (PDF), with the ‘median balanced fund’ falling by 0.4% in April.
SuperRatings said superannuation funds surged ahead in February, “continuing their stellar run, hitting double digit returns for the first time this financial year to date.”
The average super fund returned 8.1% in 2014, ahead of an earlier estimate of 7.5%, according to research company SuperRatings.
The median balanced option for super funds returned a “solid” 8.1% in the 2014 calendar year, “exceeding expectations,” said SuperRatings. This follows from a 16.3% gain in 2013 and 11.7% in 2012.
Industry super funds have consistently outperformed retail super funds over 1, 3, 5, 7 and 10 year periods, according to Industry Super Australia, based on data from SuperRatings.
Over a 10 year period the statistics show that industry super funds have outperformed “bank-owned funds” by 1.66%, 6.75% to 5.09%.
The difference is smaller for 1 year returns, with industry funds earning 8.30% and retail funds 7.75%, or 0.55% lower.
Update: SuperRatings have released the final figures for 2014, see Balanced super fund investment option up 8.1% in 2014.
Superannuation funds achieved returns of 7.5% in the 2014 calendar year, an “impressive” result according to superannuation research company SuperRatings.
Just when markets looked like tanking and taking our super funds with them, Australian superannuation funds have defied logic and benefited from a Christmas share market rally to end the year with further gains in December.