October offered a brief respite for a typical Australian superannuation fund but the following months look gloomy for returns because of Europe, said superannuation research firm Chant West.

In October the typical superannuation fund had a 3.1 percent gain.

The typical superannuation fund invests 61 percent to 80 percent in so-called growth assets. In the financial year beginning July 1 the average fund is down 2.4 percent.

Growth assets include stock, property, private equity and hedge fund investments.

“Markets have again softened in November as it becomes clear the debt crises has a long way to run,” said Warren Chant, director of Chant West, in a statement.

“If Europe does fall into recession there are sure to be flow-on effects for our part of the world,” he said.

Over a 10-year period the typical superannuation fund has gained 5.2 percent per annum, said Chant West.

A so-called conservative superannuation fund, 21 percent to 40 percent invested in so-called growth assets, has had a 5.3 percent a year gain over a decade, according to Chant West.

A so-called balanced superannuation fund, 41 percent to 60 percent in so-called growth assets, has had a 5 percent per annum return over 10 years, Chant West said.

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