This balance sheet structure is very favourable in terms of maximising long-run accumulation of wealth, because the return on these assets over long terms exceeds the cost of debt by a substantial margin. The returns do not, however, accumulate evenly from year to year. Some years produce very strong returns while others produce negative returns.
We are currently going through one of those periods of negative returns. As I mentioned, the Australian share market has fallen sharply this year. Largely because of this, the typical balanced superannuation fund experienced a negative return of about 8 per cent last financial year. Returns are again negative so far this financial year. Naturally, people find this very distressing.