Superannuation funds have posted the fifth straight month of gains in July and have begun recovering the losses caused by the global financial crisis, a report says.
Research firm SuperRatings on Monday reported that the median balanced option fund returned 3.62 per cent in July.
“This is a strong positive result for superannuants as their account balances slowly start to recover the losses that have previously been suffered,” SuperRatings said in a statement.
Over the year to July 31, funds lost 8.64 per cent as share prices were ravaged by the economic downturn and loss of investor confidence caused by the global financial crisis.
Over the five years to July 31, the funds returned five per cent a year.
OSF Super had the best performing balanced fund in the five-year period, returning 6.8 per cent a year. This was followed by Buss(Q) and Catholic Super, with 6.7 per cent each.
SuperRatings said the Australian Prudential Regulation Authority’s (APRA) super fund performance information released last week should not be used to compare investment performance.
SuperRatings said APRA’s table did not take account of investment options within a single fund.
“Our opinion is that although it was a quality release of detailed information, it cannot, and should not, be used as a meaningful tool to compare super fund investment performance,” SuperRatings said.
“The APRA tables completely ignore the huge variances in investment strategies and objectives held by the funds, risk profiles (options) selected by members and distorts performance where a fund has a significant number of investment options on offer.”