Super Funds Record First Decline in Eight Months

Post by NeilMc on November 24, 2009 · Under Australian Economy, Business News, Capital Markets, Equities, Super Funds, investments · Comment

October was the first month of negative returns for superannuation (super) funds, after seven consecutive months of gains, which is the first suggestion that the recovery in the pension fund industry may be faltering.

Independent research firm Chant West released new data on Tuesday showing that the median fund showed a negative return of 1.2 per cent during October, following seven straight months of gains, after equities and listed property trusts saw their valuations decline.

Chant West chief Warren Chant however says that October was most likely an aberration, and the recovery story for the super fund industry would continue.

“Despite the slight drop in October, the median fund has now risen by 17.4 per cent (in returns) since the end of February, when share markets around the world started rallying. Going into November, markets have picked up momentum again, so at this stage it looks as though October was just a brief ‘time out.” Mr. Chant told The Australian.

The median growth fund, which most Australian’s are invested in according to Chant West have gained 8.9 per cent during the financial year.

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