According to the latest analysis from SuperRatings, the median balanced option returned 3.3 per cent in the June quarter, representing a “high in what is historically the weakest quarter for superannuation”.
“Super funds have historically recorded higher returns in the second half of the calendar year,” said a statement from SuperRatings.
On average, balanced options has seen September and December quarters deliver 1.9 per cent and 1.7 per cent respectively for the last decade, whereas the June quarter average was only 0.9 of a percentage point.
Speaking to InvestorDaily, Lonsec research and insights consultant Gordon Toy said the lower June quarter results was due to a “seasonal effect on share markets” — the cause of which is a “slightly mysterious” phenomenon.
But this had not happened in the June quarter this year, remarked Superratings chief executive Kirby Rappell.
Average option returns for each FY quarter (2008–2018)
Source: SuperRatings
“Luckily this year investors forgot the old adage of ‘sell in May and go away’,” Mr Rappell said in the statement.
“Instead, we saw a strong recovery which ended up producing a very positive June quarter for superannuation.
“If history is a guide, members can anticipate a bit of a kick in coming periods, although this is conditional on the management of some downside risks to the Australian economy, as well as the broader global growth picture.”
But Australian growth would continue to lag global growth, particularly given the Australian share market was “dominated” by the big four banks which were being weighed down by the banking royal commission.
“The Australian economy has a bit of extra baggage, including low wage growth and a cooling property sector which could impact sentiment, but overall our outlook is positive,” said Mr Rappell.
