Super returns still positive despite volatility

Volatility returned to superannuation fund returns in August but, overall, funds managed to stay in positive territory, according to the latest research from SuperRatings.

The analysis said that August had proved a turbulent month with a strong downturn in the first two weeks followed by a swift recovery.

The result was that, overall, the median balanced option returned 0.4% while the the median growth option grew by an estimated 0.3% and the median capital stable option, buffered by lower exposure to shares, rose by an estimated 0.5%,

Commenting on the data, SuperRatings executive director, Kirby Rappell said the first two months of the new financial year had seen greater volatility with share markets impacting fund returns.

He said that it was in these circumstances that members needed to focus on long term outcomes rather than daily movements.

“Superannuation is a long-term investment for most and funds have consistently delivered good long-term outcomes” Rappell said.

“However, for those worried about how their super is doing in these conditions there are a lot of resources available to support members in making the choice most suitable for their situation.”