POWERED BY MOMENTUM MEDIA
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.
Recommended for you
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
With private asset valuations emerging as a key concern for both regulators and the broader market, Apollo Global Management has called on the corporate regulator to issue clear principles on valuation practices, including guidance on the disclosures it expects from market participants.
Institutional asset owners are largely rethinking their exposure to the US, with private markets increasingly being viewed as a strategic investment allocation, new research has shown.
Australia’s corporate regulator has been told it must quickly modernise its oversight of private markets, after being caught off guard by the complexity, size, and opacity of the asset class now dominating institutional portfolios.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
