There is a rather disappointing research data result which shows that members of Superannuation funds have amassed lowest returns in the last three years or so. Those Australians who have put their retirement savings in balanced options have garnered only 8.1% for their efforts. In comparison, 2013 offered more than double the profit registered in 2014 (16.3%) and 2012 did not do badly either, fetching a decent 11.7%.
Double-digit returns were not sustainable
Experts are, however, optimistic, and they feel that double-digit returns are not sustainable for long. Even 8.1% is quite at par with the economy fundamentals and the fact that international shares and listed properties are responsible for the returns should make for happy reading.
Property market offered bullish returns
The average annual returns over the last 3 years have been in the vicinity of 12 percent which is a good 9% above inflation. Two facts are encouraging: 1) each asset class has returned positively and 2) the depreciating dollar has failed to make a negative impact. The property market is laughing all the way to the bank; what with international listed properties showing 29% returns and Australian listed properties fetching 27%.
Hedged and unhedged shares
Talking of shares, the hedged ones returned 15% and their peer, the unhedged ones offered 10%. Once again, this is quite an encouraging data to keep in mind!
