CareSuper general manager for investments Greg Nolan says returns of up to 15 per cent that superannuation funds enjoyed over the past decade may be over.

“We will have to educate members to expect more modest returns than in previous years,” he says.

The objective of most funds is to make 3 per cent over the consumer price index over rolling five five-year periods, says Nolan.

CareSuper manages $4.6 billion.

“We are constantly thinking about asset allocation,” says Nolan. “Volatile markets will have ramifications for asset allocation and product offering decisions.”

He says the income component of asset returns in the foreseeable future will be greater than the growth aspect.

“Price appreciation is expected to be not such a big factor as income or yield,” says Nolan. “We are considering and have invested in yield-focused assets.”

CareSuper, he says, has invested in the past in “unlisted or direct investments that may be less volatile”. The fund may consider further such investments as opportunities arise, he says.