subscribe to our newsletter

SMSFs warned on 'lacklustre growth' in 2016

Miranda Brownlee
04 February 2016 — 1 minute read

SMSF investors should brace themselves for continued volatility and modest returns this year, as the performance of the major economies is unlikely to improve, according to an international fund manager.

Speaking at an event in Sydney, State Street Global Advisors (SSGA) chief economist Chris Probyn said conditions are unlikely to see much improvement over this year, with the major advanced economies suffering from a loss of momentum.

“My theme for 2016 is more of the same; lacklustre growth, low inflation and very limited policy tightening,” he said.


Mr Probyn said that while the domestically focused sectors are limiting any downside, the weakness of manufacturing in the major economies seems to be limiting any upside in returns.

“Moreover, we continue to see the risks skewed to the downside, likely fuelling bouts of investor uncertainty and market volatility,” he said.

However, in its 2016 Global Market Outlook report, SSGA said it believed European and Japanese equities were showing some life.

“Pan-European trade is picking up, and German business sentiment surveys point to solid cyclical growth,” said the report.

“Europe is a large net importer of commodities, and therefore lower input costs will improve European corporate profits.”

However, it still has a lower forecast for returns, due to the previous relative outperformance of Europe compared with its peers, and the fact the UK has a higher exposure to energy stock.

“In Japan, the Abenomics fiscal and reform program appear to finally be generating a pickup in growth and inflation,” SSGA said.

Read more:

Class collaborates with depreciation service provider

SuperConcepts upgrades superMate platform

Miranda Brownlee

Miranda Brownlee


Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.

Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years. 

Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.

You can email Miranda on: This email address is being protected from spambots. You need JavaScript enabled to view it.

SMSFs warned on 'lacklustre growth' in 2016
smsf logo
smsfadviser logo

Are you up to date with the legislative changes from 1 July? Contribution cap increases, super guarantees, age increases, SG rate increases. The budget announcement changes. Don’t be caught off guard by your clients’ questions. Prepare for any scenario with the SMSF Foundations course. 21 CPD hours available. Learn more

join the discussion

Latest poll

Do you have clients that are aged 65 or 66 planning to trigger the bring forward rules?


Get the latest news and opinions delivered to your inbox each morning

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.