Post GFC bull market delivers massive super fund windfalls
The Global Financial Crisis (GFC) stripped many retirees of savings and earnings, but Australia’s top super funds have bounced back in phenomenal fashion, with investors benefitting from the longest ‘bull rally’ since the late 40s.
In the past 10 years since the GFC, analysis shows that Australian superannuation investors have enjoyed a massive windfall recovery. The median balanced fund has returned an accumulated 155 per cent since October 2007.
That means that an investor who had $100,000 in a balanced super fund in 2007 will now have almost $159,000 in their account.
As usual, the top 10 fund performers are dominated by industry funds, with REST atop the ladder returning an average of 6.1 per cent annually. All of the top 10 funds returned significantly more than the SuperRatings industry benchmark of 4.7 per cent.
“While the GFC may seem a distant memory for many investors, it was felt accutely by retirees and impacted incomes for many Australians entering retirement,” said SuperRatings Chief Executive Kirby Rappell.
“The main reason Australia was hit so hard is due to the significant exposure super funds have to domestic and global shares. However, since the end of 2009, we have enjoyed one of the longest bull markets in history. This has more than erased the pain of the GFC, and has put retirees in a better position than they might have expected.”
Local shares are also set to end the year on a high due to strengthening international markets and steady employment in Australia.
“It looks like the Australian market will finish in a strong position for the end of 2017, boosted by improvements in global economic conditions and an improving jobs environment locally,” said Mr Rappell.
“Retail sales are softer than investors would like heading into the Christmas season, but consumer confidence is improving and local shares are now joining in the global rally, which is a positive sign for super funds.”
How does your super fund stack up?
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