Returns for the average balanced super fund slipped to an average loss of nearly 5 per cent, with the worst performer losing 11 per cent during the past 12 months to the end of August, according to analysis by research group Rainmaker. This compares to 2020-2021 record returns of around 15 per cent.
The Australian dollar surged to US63.28¢ in a dramatic session after touching a fresh 2½ year low of US61.70¢. Real returns for balanced super funds, which account for inflation, are tracking at minus 10.9 per cent over the 12 months to the end of August, according to Rainmaker. That loss is adjusted for June’s official annual inflation rate of 6.1 per cent. The economy’sThe performance of fixed interest returns such as bonds or fixed income was even worse, averaging losses of around 9 per cent during the 12 months, according to Rainmaker.
“Inflation is something investors have to seriously think about for the first time in 30 years. That means a different approach to investment, particularly in retirement where there is reliance on investments to generate income.”