Some good news after 3 years of choppy Australian sharemarket returns – average super account values have nearly restored to pre-GFC levels – yes, no one is happy about the loss of value, but look at the glass half full and I see it could have been worse.
Karina Barrymore, The Courier-Mail, page 40 reports: “The average superannuation fund is just 1.4 percent away from finally clawing back total losses from the global financial crises, after a bumper August saw all major investment options report profits. According to the latest analysis by research company SuperRatings, balanced super funds returned 1.64 per cent last month, taking the rolling 12-month profit to 6.5 percent. “Australian super funds continue to rally in line with worldwide share markets and are the closest they have ever been to the highs reached immediately before the GFC,” SuperRatings chairman Jeff Bresnahan said yesterday.
And Wouter Klijn, Investor Daily writes: “The Australian and international share markets have pushed the returns of the average balanced super fund to near pre-global financial crisis levels, industry data has found. According to data from SuperRatings, the average fund with about 60 to 76 percent in growth assets, including shares, was only 1.4 percent off the levels seen in October 2007. When looking at the growth of $100,000 over the last 10 years, the account would have reached $176,940 in October 2007, while it would have reported a balance of $174,406 in August this year. Over the past 12 months, the average balanced portfolio returned 6.5 percent.” READ MORE HERE
And Shane Wright, The West Australian, page 6 tells us: “Australians have almost reclaimed all the superannuation lost to the global financial crisis. Figures show the average balanced super fund – in which about 75 percent of all Australians have their retirement nest eggs – improved another 1.6 percent in August. It was the third consecutive monthly improvement in balanced funds, which are now 6.5 percent higher over the past 12 months. The growth was driven by the lift in the Australian and global share markets, which have continued their rallies over recent days on the back of decisions taken by banks in the US, Europe and Japan.”