Small negative would represent a good 2022 super return

Mike Taylor

Managing Editor/Publisher, Financial Newswire

12 December 2022

Superannuation fund members should be happy if they see a flat return or small negative return for 2022, according to the latest analysis from SuperRatings.

As funds close out the 2022 calendar year, the specialist superannuation ratings house pointed to the fact that returns had remained in positive territory in November after a positive October.

It said that the median balanced option returned 2.6% in November, with equity market sentiment helping funds to regain some of the losses experienced at the beginning of the financial year.

However, the analysis said that uncertainty remained however and members should expect to continue to see their super balances bouncing up and down over the coming months.

It said the median growth option increased by an estimated 3.2% in November, while the median capital stable option which has less exposure to share markets delivered a smaller positive result, with a rise of 1.6%.

Pension returns also rose in November, with the median balanced pension option up an estimated 3.0%. While an increase of 3.4% was estimated for the median growth option and 1.8% for the median capital stable pension option.

Commenting on the data, SuperRatings executive director, Kirby Rappell said funds had faced a tough calendar year although performance had improved over the last couple of months.

“If we see a small negative return or even a flat return for the typical balanced option for 2022, depending on how December plays out, this would be a better outcome than anticipated a couple of months ago,” he said.