Super returns kick off 2023 in positive territory

Mike Taylor

Managing Editor/Publisher, Financial Newswire

13 February 2023

Superannuation fund returns have kicked off 2023 in positive territory after their negative end to last year, according to the latest data from SuperRatings.

SuperRatings estimates that the median balanced superannuation option generated a return of 3% in January.

The SuperRatings analysis said the continued upward trajectory in interest rates remained a key challenge for the return outlook, with increasing rates either signalling economic resilience or inflationary threats expanding.

It noted that the positive return pushed estimated financial year to date returns to 6.0% with five months left in the year, which demonstrates the resilience of super during the market volatility that has been experienced.

The analysis said the median growth option increased by an estimated 3.4% in January, while the median capital stable option delivered a 1.8% return to members.

SuperRatings executive director, Kirby Rappell said funds had made a positive start to 2023 underlining the way in which they had navigated an uncertain market.