The news came amid another rough day of trade on the Australian share market, with the all ordinaries losing another 1.65pc.

The dollar recovered slightly from its overnight shellacking to be buying US 62.27 cents, after earlier trading near its weakest level in more than five years. But the big news was the confirmation that superfunds have copped a hiding.

The average return for a balanced superannuation fund has fallen 11.6pc for the year to the end of September, the worst annual result since the introduction of compulsory superannuation in 1992, according to fund rating agency SuperRatings.

For the three months to the end of September, the average balanced superannuation fund sank 3.4pc, marking the fourth consecutive quarter of losses, with more bad news to come once this month's market plunges are taken in account.

"With markets even more volatile since 30 September, the 12-month rolling return is expected to fall further by the close of October," said Jeff Bresnahan managing director of SuperRatings in a statement.

The closely watched S&P/ASX-200 share index of the top 200 Australian companies has lost about 16pc this month alone.

The index is now almost 44pc off its record high, reached almost one year ago.

Cash-based funds were the champs, with positive returns across the board.

"The era of double digit per annum returns over a five-year period appears to be at an end with just two funds able to make this claim as at 30 September 2008," Mr Bresnahan said in a statement.

Among highlighted funds' performance were the MTAA Super Balanced fund, which gained 12pc for the five years ending September 30, while the Brisbane-based Buss(Q)'s balanced growth posted a 10.5pc return over the same period.

"Come 31 October 2008, it is doubtful any balanced investment option will able to lay claim to this for quite some time," he said.