Super returns maintained their momentum in February as confidence that inflation is coming under control continued to build.
SuperRatings reported on Wednesday that the median balanced option generated a return of 1.8 per cent for February, after rising 1.1 per cent in January.
The February result brings the return to an estimated 6.7 per cent for the median balanced option after the first eight months of the financial year, which, the ratings agency said, is a “pleasing outcome given market uncertainty”.
“Superannuation funds have had a strong run since late last year with the positive February result being the fourth consecutive month of gains,” commented Kirby Rappell, executive director of SuperRatings.
The median growth option gained an estimated 2.3 per cent for the month, while the median capital stable option also rose by an estimated 0.7 per cent.
“While the trajectory of inflation and central bank interest rates maintains market uncertainty, super funds continue to deliver gains for member balances, supporting stronger retirement outcomes,” said Rappell.
“Super fund returns remain much less volatile than equity markets demonstrating the benefits of diversification and the ability of funds to weather these markets conditions with competitive outcomes for their members.”
Pension returns also grew over February, with the median balanced pension option increasing by an estimated 1.9 per cent. The median capital stable pension option is estimated to have grown by 0.7 per cent over the month while the median growth pension option is estimated to increase by a 2.5 per cent for the same period.
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