Super funds fighting back

Australia’s superannuation funds are climbing slowly out of the hole they fell into, after last September’s share market crash.

Jeff Bresnehan, of Superratings, says the value of assets held by the median fund in Australia rose by 3.06 per cent in April.

He said that was the strongest monthly performance in any month in the new millenium.

April was the second successive month to produce a positive result.

But fund assets, this financial year, are still down 13.71 per cent.

Howevert that shortfall hit 18.32 per cent, in the financial year to the end of February.

The Former Federal Superannuation Minister Nick Sherry has often urged Australians to look at their super as a long term investment.

Heaccepts, though, that many Australians, who are now close to retiring age, are suffering significant losses, as a result of the crash.

However other figures, also produced by Superratings do support Senator Sherry’s case.

Superratings has calculated that the rolling 5 year return, for Australia’s mid level superannuation fund, was 4.67 per cent a year, over that time.

And the rolling average,  over a 10 year term, was 4.77 per cent a year.

Mr Bresnehan said the recent improvements had been “driven by a resurgent share market>

Bankwest economist, Alan Langford, also sees evidence that the appetite for risk – and reward – is returning to global finance markets.

He says the retreat in key debt market risk premia is starting to gather “significant momentum.”