Super kicks off new FY in positive territory
Finally, some good news for hard-press superannuation fund members, with superannuation fund investment returns heading back into positive territory in July.
After ending the last financial year in negative territory, the latest analysis from specialist superannuation ratings house, SuperRatings reveals the median balanced option delivered a return of 3.1% in July on the back of Australian and global equity markets.
The SuperRatings analysis noted that the S&P/ASX 300 Information Technology Sector Index posted a return of 15.4% during July while the Reserve Bank of Australia cash rate rose to1.85%.
It said the median growth option rose by an estimated 3.5% while the median capital stable option also delivered a positive result with an increase of 1.9%.
Commenting on the data, SuperRatings executive director, Kirby Rappell said it was pleasing to see a strong recovery over the month of July demonstrating the resilience of superannuation funds and their ability to navigate the uncertain investment environment.
“We’ve been emphasising the importance of focusing on the long-term and amid the recent market uncertainty it’s understandable that people have been concerned about the ups and downs in their account balances,” he said.
“This year we have seen the ongoing challenges of COVID-19 coupled with a challenging global economic environment driving the volatility. We continue to highlight the importance of setting your long-term investment strategy and the performance over the last month shows the perils of trying to time the market, with members who may have switched to more conservative investment options missing out on the bounce back.”
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