Researchers have warned that Australian superannuation funds will return their biggest losses in the 2008/09 financial year since the introduction of compulsory super 17 years ago.
SuperRatings an independent research group stated that they expected the medium balanced investment to post a loss of 13 per cent for the 2008/09 financial year.
A Medium Balanced Investment is defined by SuperRatings as one with exposure to growth style assets of between 60 and 72 per cent. SuperRatings also stated that approximately 80 per cent of Australians in major super funds are involved in such investments.
SuperRatings managing director Jeff Bresnhan stated that the impact of the global financial crisis on the stock market will mean that superannuation funds will post their second financial year of negative returns and that 2008/09 will go down as the worst financial year for super fund investors since the introduction of compulsory super in July 1992.
SuperRatings data has shown that super funds still compare favourably to listed property investments, with a 46 per cent loss in the 2008/09 financial year, and the 25 per cent drop on returns on the ASX and Dow Jones indices.
SuperRatings also found that on a long term basis, balanced super investments have provided returns of 6.7 per cent per annum since 1992.