May gains boost super returns despite uncertainty
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.
Recommended for you
Including the superannuation sector in CSLR does not achieve the goal of shared responsibility and fairness given the root cause of the misconduct often lies elsewhere, the head of the SMSFA said.
Super funds have continued their growth streak, with the median growth fund on pace for a healthy calendar year return.
ASFA has called for targeted reforms to close the superannuation trust gap among culturally and linguistically diverse Australians.
Former ASIC and APRA leaders launch a conflict-free model to meet rising prudential expectations.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
211.16 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
121.06 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Smarter Money Long-Short Credit Investor USD
68.96 3 y p.a(%)
