Super returns headed to positive EOFY

Despite the volatility created by US President, Donald Trump’s tariff regime, superannuation fund returns appear set to end the financial year in positive territory, according to superannuation research and ratings house, SuperRatings.

The SuperRatings analysis has pointed to a positive 2.6% result in May for the median balanced option, following the small positive result in April.

SuperRatings executive director, Kirby Rappell said the result pointed to returns being on track for a strong financial year result, despite the continuing volatility.

He noted that the median growth option grew by 3.1% for the month, while the median capital stable option rose by a more modest 1.1%.

Pension returns also recovered strongly, with the median balanced pension option increasing by an estimated 2.9%. The median capital stable pension option is estimated to rise 1.2% over the month while the median growth pension option is estimated to rise 3.5% for the same period.

“Funds are now on track to deliver mid to high single digit returns for the financial year, with more growth focused options potentially reaching double digits if we see current momentum carry through June,” Rappell said.

“However, as we saw a few months ago, markets can change quickly, and we encourage members to remember that superannuation is a long term investment.”