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Volatility shakes up super returns: SuperRatings

Volatility shakes up super returns: SuperRatings

Reporter
— 1 minute read

Superannuation returns have taken a second hit in as many months thanks to volatility, but median balances are still ahead for the financial year, according to SuperRatings.

According to a statement from research house SuperRatings, Australian superannuation returns for members in a balanced option in March saw a return of -0.7 per cent.

However, members in a growth option suffered slightly more, with a return of -1.1 per cent, but those who had exposure to Australian shares only were hit hardest with -3.1 per cent returns.

SuperRatings chief executive Kirby Rappell said despite volatility shaking markets, superannuation was still one of the best investment options available.

“That latest market turmoil has had a short-term impact on super returns,” Mr Rappell said, pointing out that super members would have to get used a more volatile environment.

“Volatility is undoubtedly emerging as the new normal presenting an environment that many super members have not experienced in a decade,” he said.

“This volatility needs to be managed, but no one should lose sight of the fact that super continues to deliver strong returns.

“It remains overwhelmingly the case that superannuation … is one of the most important sources of wealth for Australians,” Mr Rappell added.

Those exposed to international shares outperformed other fund categories, according to SuperRatings data.

REST Super’s Core Strategy and CareSuper’s Balanced fund option were respectively first and second on the list of top-ten performing balanced funds across 10 years, at 7.1 per cent.

 

Volatility shakes up super returns: SuperRatings
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