(July 29, 2010) — Australia’s balanced superannuation funds, in which 80% of workers have their retirement savings, have returned an average of just 4.5% a year over the past 10 years, weighted down by the global credit crisis, research by SuperRatings found.

In the same period, super funds invested solely in Australian shares returned 6.63%.

Weakness on Australian and oversees equity markets saw the average return from balanced super funds fall to 9.79%, despite more positive predictions that super fund returns for 2009-10 could be as high as 15%. Still, the 2009-10 returns reflect an improvement on the 12.7% during the 2008-09 period and the 6.4% loss from the previous year.

“Whilst not looking great on paper, in a relative sense balanced options have achieved what they set out to do, namely to prevent significant losses through diversification,” SuperRatings managing director Jeff Bresnahan said.

Top Five Super Funds

(Balanced investment option)

1. Local Government Super Acc. Balanced Growth (12.8%)

2. BT Lifetime Super Emp. Balanced (12.4)

3. ANZ Super Adv. Managed growth (12.2%)

4. Plum, pre-mix moderate (12.1%)

5. Maritime Seafarers Accum. Balanced (11.9%)