Super returns register fourth consecutive positive month

Superannuation fund investment returns have made a solid start to 2024 with the latest SuperRatings data pointing to second consecutive month of positivity with the median balanced option generating 1.8% for February.

SuperRatings pointed out that this brings the total return for the median balanced option to 6.7% for the first eight months of the financial year.

Commenting on the data, SuperRatings executive director, Kirby Rappell said that superannuation funds had had a strong run since late last year with February being the fourth consecutive month of gains.

The SuperRatings data also revealed that pension returns had also grown in February, with the median balanced pension option increasing by an estimated 1.9% while the median capital stable option grew by an estimated 0.7%.

“While the trajectory of inflation and central bank interest rates maintains market uncertainty, super funds continue to deliver gains for member balances, supporting stronger retirement outcomes,” Rappell said.

“Super fund returns remain much less volatile than equity markets demonstrating the benefits of diversification and the ability of funds to weather these markets conditions with competitive outcomes for their members.”

“For those members thinking about changing their investment option it is important to consider how long they will be investing for and the level of risk they are willing to take on. Members should seek advice from their fund or a trusted adviser before making changes to their investment strategy.” Rappell added.