Returns : Australian super funds 'worst performing'

AUSTRALIA'S superannuation funds were among the worst performing among developed countries over the past three years, falling casualty to their love affair with shares.

They logged average returns of -2.8 per cent from 2008 to last year, with only the pension funds of recession-hit Estonia (-3.7 per cent) and Portugal (-3.1 per cent) faring worse among OECD countries, The Australian reports.

And the industry's assets, as a share of the economy, are still to return to 2008 levels despite a solid bounce in its investment returns last year, the latest OECD analysis of pension markets reveals.

Geoff Kingston from Macquarie University's economics department said yesterday the aggressive investment strategies of most Australian super funds was to blame for the slide.

"Roughly half of your superannuation assets in growth assets suits most people, but the typical Australian fund, even for older people, is for 60 to 70 per cent (allocation) in growth assets,'' he said.

money.ninemsn.com.au 27 Jul 2011

Another scam at the expense of the general populous.

The so called 'poor performing' superannuation funds are poor performing for the people and NOT the companies that invest your money.

The short term money markets can make 3% per day for the company.

The general interest rate offered to customers is approximately 5% per annum, a figure well down on the mass profit made from your funds.

One of the least beneficial financial decisions is to 'lock' your money into a corporation's super fund.

Current Australian television commercials are pushing the public to invest in super funds.

Financial institutions know that they have one of the poorest performing interest rates to the customer, in their super funds.