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Super funds record upward trajectory in January
Monthly data from SuperRatings has revealed an upward trajectory in returns from superannuation funds in January following a disappointing 2022 calendar year.
The research house estimated 3% returns on median balanced options and 3.4% returns on median growth options from super funds in the last month.
The median capital stable option delivered a 1.8% return to members.
Additionally, pension returns were on the rise, with an increase of 3.9% estimated for the median growth option and a more modest 2% for the median capital stable pension option.
All this would push estimated financial year to date returns to 6%, SuperRatings said, with five months left in the calendar year.
“Funds have had a positive start to 2023 and it again underlines the way in which funds have navigated an uncertain market well overall,” said Kirby Rappell, executive director of SuperRatings.
“However, inflation remains high and the Reserve Bank’s commitment to controlling inflation means member balances are likely to see more ups and downs over the coming months.”
For many, the continued hikes in interest rates would either signal inflationary threats or economic resilience, SuperRatings noted, though positive returns from funds demonstrated “the resilience of super during the market volatility that has been experienced”.
In 2022, the top-performing fund had been Perpetual Balanced Growth fund with returns of 1.7%, the research house revealed.
This followed by First Super Balanced which returned 0.1%. In third place was CareSuper Balanced which lost 2%.
However, SuperRatings reminded members that super was a long-term product and that over 10 years, funds had delivered better performance.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
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TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
36.43 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
35.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
