The world may be in chaos right now, but Australian super funds have remained steady, posting modest returns and remaining on track for double-digit returns for the 2018 financial year.
The ongoing trade war between the US and China has sent shockwaves through the market, with super funds struggling through May but coming out delivering modest positive returns.
According to SuperRatings, the median balanced option return was only 0.5 per cent in May, but the financial year-to-date return is sitting at a more positive 8.4 per cent, meaning super funds could post double-digit returns for 2107-18.
“May was a challenging month for super, with global factors playing a significant role,” said SuperRatings CEO Kirby Rappell.
“The ongoing tariff saga between the US and China, along with talks between President (Donald) Trump and North Korean leader Kim Jong-Un seemed to wrongfoot markets in May, and super funds were not immune from the uncertainty.
“But despite May’s disappointing performance, super members should expect a very solid innings from super come 30 June. We need to see an average return of around 1.5 per cent in June for balanced funds to record a double-digit gain for the financial year, which is entirely possible.”
While global investments posted median returns of just 0.4 per cent, members with full exposure to Australian shares enjoyed a return of 1.1 per cent.
The gap between the best and worst funds was clear, with the best-performing balanced options growing to $203,150 over the last decade and the worst growing to just $145,196 – a difference of $57,954.
With the end of the financial year approaching, now is the ideal time to see whether you are ‘super fit’.
According to SuperRatings, the first step is to consolidate your super into a single fund. You can find out if you have more than one super fund by visiting ASIC’s MoneySmart website.
Once you’ve consolidated your super, check whether it stacks up at SuperRatings, or check the tables below.
The top 10 best-performing balanced funds
The top 10 best-performing growth funds
How does your super stack up? Have you had to consolidate your super? Was it easy? Do you have any advice for others wishing to do the same?