First quarter super returns positive

Mike Taylor

Managing Editor/Publisher, Financial Newswire

14 April 2023

Superannuation fund returns finished the first quarter in positive territory thanks to a solid performance in March, according to the latest data from SuperRatings.

The specialist research house estimates the median balanced investment option generated a return of 0.9% in March and 3.4% for the quarter.

It said that the median growth option also rose by an estimated 0.9% over March, while the median capital stable option rose by an estimated 1.0% for the month.

SuperRatings said pension accounts provided slightly better returns over the period, with the median balanced pension option rising an estimated 1.1%. The median capital stable pension option is also estimated to have gained 1.2% over the month while the median growth pension option is estimated to rise by a slightly smaller 0.9% for the same period.

Commenting on the data, SuperRatings executive director, Kirby Rappell said super funds had continued to demonstrate their ability to capture upside benefits for members when they were available in the market while managing for market volatility through diversification.

“As we edge closer to the end of the financial year the outlook feels slightly more stable, although there is still a chance that annual returns could drop back into negative territory depending on the final quarter of the financial year,” he said.

“While there has been significant ups and downs over each month in the year so far, superannuation remains a long-term investment for most and these shifts have a much smaller impact when considering 10 year performance,” Rappell said. “Funds are well equipped to navigate changing markets, with 10 year performance estimated to be 7.4% and demonstrating resilience to date.”