The median balanced superannuation fund rose 2.7% in April, recovering some losses from February and March, but funds on average have lost 8.1% since the start of 2020, according to SuperRatings.
The research house’s latest data found the rolling one-year return was a loss of 2.5%, the median growth options was down 9.7% since the start of the year and down 3.2% over the past year.
The median capital stable option was down 3.5% since the beginning of 2020 and was flat (0%) over the past year.
The median balanced pension option was down 8.5% since the start of 2020, while the median growth pension option fell 10.3%, and the median capital stable pension option was down 3.7%.
SuperRatings executive director, Kirby Rappell, said: “Markets appeared to show an eerie sense of calm, thanks in part to the fiscal and monetary response from the government and Reserve Bank of Australia, but also due to the success of social distancing and other measures in containing the virus.
“Happily, the conversation has turned to how we can safely reopen key sectors of the economy, but it would be fair to say apprehensiveness remains.”
Rappell noted the firm was having more conversations with funds to determine their level of preparedness should the situation deteriorate, and warned the biggest mistake members could make was to cash out and miss the recovery.
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.