The SelectingSuper workplace default option MySuper Index decreased slightly by 0.1% in the month of January. The small negative result in the first month of 2017 was underpinned by negative returns in equities along with uncertain fixed interest market.

The monthly drop was on the back of strong performance in the final months of 2016 and brings the 12 month annual return to January 2017 to a very strong 9.5%. Highlighting this strength, over 40% of all workplace default funds achieved annual returns over 10%.

Property, which has provided a significant positive impact on investment outcomes over recent periods dropped back to a more modest contribution of 6.5%. The infrastructure index continues to reflect strong returns in that segment over the medium term.

The movement in the yield curve in recent months has resulted in fixed interest returns dropping back both domestically and internationally.

In net terms this means funds with relatively high exposure to equities, and infrastructure outperformed in the 12 months to December. Similarly funds with relatively larger holdings in fixed interest in the period underperformed.

Regarding the market segments, the gap between not-for-profit (NFP) funds and Retail funds within the Workplace sector continues. The 12 month return gap has increased to 110 basis points in favour of NFP funds. This increase reflects the relatively lower performance of Retail funds in January underpinned by negative returns in listed equity markets.

The long term 5 year segment gap is 130 basis points in favour of NFP funds.

Stephen Fay, Head of Superannuation Research at Rainmaker Group is available for interview.

For media enquiries, please contact:

Stephen Fay
Phone: 02-8234 7500
Email:  stephen.fay@rainmaker.com.au