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.
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.
As institutional investors grapple with shifting sentiment towards US equities and fresh uncertainty surrounding tariffs, Australia’s Aware Super is sticking to a disciplined, diversified playbook.
Market volatility continued to weigh on fund returns last month, with persistent uncertainty making it difficult to pinpoint how returns will fare in April.
The Association of Superannuation Funds of Australia (ASFA) has called for the incoming government to prioritise “certainty and stability” when it comes to super policy.