Is your public member super in the top 10?

By Kristy Churchill - Financial Planning Assistant

Since the global financial crisis of 2007/08, Australian Super has earned an average of 117% for its public offer funds[1] members in the past 9 years.

You may say that after 9 years the rally in markets since the global financial crisis may be getting a little long in the tooth, but research carried out by SuperRatings noted, that the last dip in markets in February this year, was just a one-month dip, in the 9 years since the global financial crisis. 

Over the period of 9 years since the bull market started rally, the median balanced option fund has delivered an average return of 9 per cent per annum, reflecting an accumulated growth of 117%.

Meanwhile, those public offer fund members with growth options, saw a median return of 9.99% pa or an accumulated 134%.

Market corrections can certainly cause pain for their investors and members, it causes uncertainty and panic; these are however often to balance and check that the market is capable of self-reflection, and Australian investors are focused on valuations as well as the broader economic picture.

This research shows why it is important for investors to caution away from making decisions based on short periods of performance, and SuperRatings CEO Kirby Rappell said “The lesson for superannuation members is that a focus on long-term performance is essential.  While members may be unnerved by recent market volatility, it is impossible to ignore the significant gains that super funds have delivered since the start of the bull market in 2009.”

Obviously fund choice does matter in all of this, as the significant difference between the best performing and worst performance balance and growth fund options.

Top Ten Public Offer Funds[2]

The Legal Stuff

[1]Public Offer Fund

A public offer fund is a superannuation fund that can be joined by members of the public. It is a regulated fund consisting of pooled superannuation sold commercially, for example, through life companies, bank subsidiaries or financial planners.

This category includes master trusts (where a large number of unconnected individuals or companies operate their superannuation arrangements under a single common trust deed) and personal superannuation products.

[2] as measured by SuperRatings over the 10 years to 31 January 2018