Despite the ongoing noise and uncertainty, super funds appear to be back on track for a strong financial year result.
After a small positive result in April, SuperRatings estimates that the median balanced option returned 2.6 per cent to members over May.
In a statement on Tuesday, Kirby Rappell, executive director of SuperRatings said: “As we approach the end of the financial year, we see that investors seem to be able to look past tariff uncertainty.”
“Following the positive month it appears funds are back on track for a strong financial year result, despite the noise and uncertainty. While this will likely be a relief for members, we can see that volatility is likely to remain for some time,” Rappell said.
The median growth option grew by an estimated 3.1 per cent for the month, while the median capital stable option, rose by a more modest 1.1 per cent.
Pension returns also strengthened in May, with the median balanced pension option rising an estimated 2.9 per cent, the median growth option up 3.5 per cent, and the median capital stable option increasing 1.2 per cent for the month.
While funds have regained ground over May, Rappell cautioned that “markets can change quickly”.
However, he noted that funds are on track to end the financial year with mid to high single-digit returns, while more growth-focused options could reach double-digit gains if current momentum continues through June.
