More bad returns await

Ausbil Dexia has predicted that returns from superannuation funds this financial year will fall to their lowest level in 30 years. The average fund return in February declined by 2.98 per cent, driving down returns for the 2002-2003 year to minus 7.8 per cent.

Ausbil Dexia said unless there's a dramatic turnaround in global equity market performances the 2002-2003 year will be one of the worst for super funds since performance surveys were introduced 30 years ago. So far this financial year, the Australian sharemarket has fallen 10.7 per cent, compared with 21.5 per cent in the UK, 42 per cent in Germany, and 8.6 per cent on the Nasdaq and 14.6 per cent on the Dow Jones in the US. During February 2003, direct property and bonds were the best performing asset classes, Ausbil Dexia says.