The September 11 attacks have pushed equity markets down, pushing the average balanced super fund down by 2.6%, according to investment analysts Ausbil Dexia. Chief Investment Officer Michael Wilson said returns for the financial year to date are now at minus 5.7%. “Coming on top of a global slowdown, the events of September really hit hard,” he said. There is now a greater possibility of a negative return for the financial year.

But Mr Wilson is confident the equity markets – and consumer confidence – will recover before the year is out, pointing out that governments around the world have introduced fiscal packages to stimulate their markets. Interest rate cuts will also affect investment results.

International investors were saved by the low Australian dollar, which fell 7.2% during September. This provided a buffer for international equities which went negative by only 2.8% in dollar terms. If the currency had been steady during September, it would have been –9%.