Low or negative investment returns being experienced by many super fund members for 2001-02 reflect the cyclical nature of investing and have been preceded by a 15-year “dream run” according to Philippa Smith, the CEO of the Association of Superannuation Funds of Australia.

“Many super fund members are experiencing their first taste of a low or negative return since the introduction of award superannuation and the Super Guarantee – something that is remarkable in itself,” she said. “Historically, a run of 15 years of strong, often double digit returns is unheard of; a low return every seven years or so is much more common.”

Ms Smith said funds have to “take the rough with the smooth. This is not something that only affects super – everyone else who has been exposed to the share market has suffered too, from individuals to large institutional investors.”