“We are starting with the end of a really 13-year boom. Unemployment is very low, inflation is very high and interest rates are rising. Exactly the opposite of what it was in 2009. That’s why I think yields will be lower because the conditions of the last 10 years, the starting conditions, are now at opposite points, so it’s going to be harder, ”Delaney said.
“It is not clear that this is the end of difficult times. And often these difficult times last longer than you expect … I think it could last a little longer and we just have to stick to it, but don’t assume it will run out forever. “
Investors ’worries about rampant inflation and higher interest rates have shattered the valuations of tech companies this year, with a strong sell-off of listed technology stocks. However, Delaney said he would still consider investing in technology.
“Paradoxically, the cheaper they are, the more I care,” he said. “You want to put money when things are serious. Not when things are going well.”
Other super-funds are expected to release their yields in the coming weeks, with similar results expected at all levels given rising interest rates, fears of inflation and worsening confidence in consumers.
Chant West senior investment research director Mano Mohankumar said his research estimated that the average return on growth options would be between -3.5 and -4%.
He said much of the year’s loss was attributed to June of this year.
“If you look at the 11 months to the end of May, the average growth fund was really positive.”
He said long-term super funds had achieved their goals and members should focus on those results rather than short-term figures.
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“It represents a negative performance, but it’s important for members of the super fund to see things in context. It only represents the fifth negative year of the 30 years of super mandatory,” he said.
“It’s important to see things in context and remember that the super is a long-term investment. We have had a difficult year and there are some challenges ahead, but being distracted by noise in the short term can really hurt the results of long – term investments. “
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