Written on the 9 September 2009
ACCORDING to one industry superfund, members are now willing to dip their toes in higher return, riskier investments, following a strong rebound in domestic and international share markets.
The Australian Stock Exchange’s S&P/ASX 300 index has bounced back from its dramatic slide of 2008-09 to record a 15.7 per cent increase in the three months ending August 20, 2009. The benchmark MSCI World ex-Australia Hedge index has risen a healthy 11.9 per cent in the same period.
Intrust Super CEO Brendan O’Farrell, says the more positive investment outlook had been noted by fund members, who were once again looking to the riskier environment of share markets as an investment option.
“Since May there has been a consistent increase of almost 130 per cent in the number members switching from cash to equity-linked options,” says O’Farrell, whose members hail mainly from the hospitality, tourism and retail sectors.
*Around 75 per cent Intrust Super members are in the fund’s default investment option, with the remaining 25 per cent of members spread across its other asset class investment options.