The average balanced fund has reported a negative return of 3.4 per cent over the quarter ended September 30, 2008, according to research firm SuperRatings.
Over an extended 12 month timeframe ending in September, the median return from the balanced option of a super fund was negative 11.59 per cent, the lowest since the inception of compulsory super in 1992.
When looking at the five-year period ending September 30, 2008, only two superannuation funds provided double digit returns for members, through balanced investment options.
Both were industry funds, with the MTAA Super and Buss(Q) funds delivering a positive 12.3 per cent and a 10.5 per cent per annum return respectively, over the half decade.
The negative financial results are also beginning to affect super fund members, with more of them attending seminars on understanding the situation and how to deal with it, according to SuperRatings.
However, superannuation funds have still managed to produce acceptable returns against inflation over the medium to long-term.
Over seven years, the median balanced fund has delivered a positive return of 7.18 per cent per annum, and a positive return of 7.14 per cent per annum over a decade.
This compares favourably against a measure of the Consumer Price Index plus 3.5 per cent per annum, according to the research centre.
The research house predicts the key to superannuation funds helping members survive the tougher investment environment will be personalised, simpler communication.
