Super returns positive for EOFY

Superannuation fund returns appear on track to finished the financial year in the black, according to the latest data from SuperRatings.

The latest analysis from SuperRatings revealed investment returns from the median balanced option moved back into positive territory in May after falling 1.6% in April.

The analysis said the median growth option grew by an estimated 1.1% in May while the median capital stable option rose by just 0.6%.

The SuperRatings data showed the median growth option grew to 8.1% in May in financial year to date terms.

Commenting on the data, SuperRatings executive director, Kirby Rappell said that while uncertainty remained high around economic resilience and interest rates, superannuation returns should be a source of comfort for super fund members.

“We encourage members to block out the current market noise and focus on long-term strategy as the ups and downs are likely to continue for the foreseeable future.

“Funds are on track to deliver 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” he said.

“Most members should take comfort from funds achieving a second consecutive year of positive returns after the seesaw of returns over the past few years, as it further reinforces funds’ ability to navigate challenging investment markets.”