Early super funds results better than expected
Rainmaker Information research shows that superannuation funds may have performed better than anticipated in the tough 2001-2002 financial year. The 40 funds that have reported to date have either bettered or matched returns from a range of investments tracked by Rainmaker.
The survey results were divided into growth, balanced and conservative funds. Employees' growth funds that have reported to date returned an average minus 4.8 per cent, which is over 2 per cent better than Rainmaker predicted given their high level of investment in Australian and international shares. In 2002, Australian shares fell 4.5 per cent and international stocks plummeted 23.2 per cent. Balanced funds returned -3.5 per cent, compared with Rainmaker's estimate of -3.4 per cent, while conservative funds returned 1.2 per cent on average, against the Rainmaker estimate of 1.9 per cent.
However, Rainmaker's managing director Chris Page said that only 40 funds have reported their 2001-2002 results yet and many fund members are facing negative returns on their accounts. But Mr Page urged investors not to react in a “knee-jerk fashion” to recent results.