Santa rally delivers 10.5% return for super funds in 2017

Date 08/01/2018

2017 has proven to be another eventful year for investors, with some local market weakness during the year accompanied by a strengthening global outlook. In December, superannuation continues to deliver, helped along by a late rally from Australian shares.

According to SuperRatings, the SR Balanced (60-76) Index, used to measure balanced super fund returns, is estimated
to rise 0.6% in December, bringing the annual return for 2017 to 10.5%. Australian shares have been the main drivers of growth through December, offset by negative performance from global shares, which also comprise a significant proportion of most super fund portfolios.

“Investors will certainly be starting out 2018 on the front foot, despite some of the challenges we have seen throughout the past 12 months,” said SuperRatings CEO Kirby Rappell. “For Australian investors, it was a frustrating year in many respects, with the share market rallying in fits and starts. However, a falling Australian dollar in the latter part of the year did help boost returns for funds’ international share exposures. Of course, the US market has provided some crucial support, with the new US tax package providing some momentum in the market; however, we will have to wait and see exactly how that will flow through to returns in 2018.”

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Santa rally delivers 10.5% return for super funds in 2017

Date 08/01/2018

Australia’s superannuation funds are expected to deliver double-digit returns over the year, with 2017 marking the sixth
consecutive year of positive returns for super.

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