SuperRatings

Superannuation funds and pensions posted declining returns in September, weighed down by falls in sharemarkets and an uncertain rates outlook, according to a new report. But they continued to outperform equities, showing diversification pays off.

Superannuation funds are more commonly offering ‘lifecycle’ investment options that adjust with a saver’s age. But a recent paper by the superannuation regulator highlights that some of these funds aren’t sticking to their mandates.

Australians should be putting more money into superannuation and diversifying out of property, some say, even as super performance remains a question mark.

Funds have adapted to the test’s metrics, but the consequent risk aversion could put the industry in “limp mode” and curb performance.

Funds have adapted to the test’s metrics, but the consequent risk aversion could put the industry in “limp mode” and curb performance.

Superannuation funds have held up well despite ongoing market volatility. Members are encouraged to hold on to their current option and avoid making “knee-jerk” reactions. Members have reaped the benefits of diversification with different portfolio options performing in line with their allocation. Research house SuperRatings estimates that the median balanced option fell 8.9 per cent…