SuperRatings has estimated the median balanced option rose 2.7 per cent in April as share markets recovered from their March bottom and the nation shifted towards a stage reopening of the economy.
Given the extent of the falls in February and March, the balanced return since the beginning of the year would then be -8.1 per cent, while the rolling one-year return is -2.1 per cent.
The median growth option, which generally has a higher exposure to shares and other risk assets, is down an estimated 9.7 per cent since the start of 2020 and 3.2 per cent over the past year.
Meanwhile the median capital stable option is down an estimated 3.5 per cent since the start of 2020 and is flat over the past year.
However, pension returns are predicted to have fared slightly worse, with the median balanced pension option being down an estimated 8.5 per cent since the start of the year, while the median growth option fell 10.3 per cent and the median capital option was down 3.7 per cent.
Kirby Rappell, executive director at SuperRatings said his firm is closely monitoring how funds are positioned to manage any further fallout.
“We’re having more conversations with funds to determine their level of preparedness should the situation deteriorate,” Mr Rappell said.
SuperRatings has urged members to look beyond the horizon, noting the biggest mistake would be to cash out currently and miss the recovery.
It calculated an initial balance of $100,000 invested in the median balanced option at the outbreak of the global financial crisis in 2008 would now be worth an estimated $184,035, as at the end of April.
In contrast, a member invested in the median cash option would have grown their savings to $135,006.
The largest annual fall has remained the 12.7 per cent decrease members experienced in 2008-09, SuperRatings stated, while the current financial year-to-date return is estimated to be -4.3 per cent.
At this stage, the financial year result for 2019-20 is expected to be negative, but estimates have pointed to a milder downfall than 2007-08 or 2008-09.
