Super Funds Recover Further In May

Post by NeilMc on June 11, 2009 · Under Super Funds, Wealth Management, banking, investments · Comment

Superannuation fund valuations have regained about $70 billion in the last couple of months in line with the recent recovery in global equity markets.

The average growth fund has increased by another 1 per cent last month increasing balances by $10 billion. The recovery which began in February has seen growth funds increase by 7 per cent since the start, adding a combined $70 billion to balances.

Independent researcher Chant West has forecast that the average growth fund will still lose 13 per cent this year, despite the recent rally and gains that have been made.

Chant West research analyst Mano Mohankumar said that growth was still being curtailed by the equity market and unlisted asset valuations continuing to decline. Mr. Mohankumar said he expected a loss of up to 25 per cent for the year ending June.

A different study released, by Bankwest yesterday suggests that the retirement plans of hundreds of thousands of Australians have been affected.

The report suggests every other retiree or those soon to retire has seen up to $50,000 in losses over the last year from retirement savings or investment portfolios. Whilst one in three had lost up to $100,000.

The report said that the retirement plans of as much as 74 per cent of elderly Australians had been affected.

“While younger Australians have years to recover, many retirees have little chance to recover lost wealth,” Bankwest’s Ian Corfield said.

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