Superannuation funds posted positive gains for the fifth consecutive month in August thanks to market stability and continued momentum in shares, according to SuperRatings.
The research house found the median balanced option returned 1.8% in August, taking the financial year to date return to 2.9%. Over the year to 31 August, 2020, the median balanced option returned 0.8% but was down 2.4% since the start of 2020.
Growth and capital stable options gained 0.7% over the year to August.
The research house said economic recovery was highly dependent on infection rates and the gradual easing of restrictions across the country.
SuperRatings executive director, Kirby Rappell, said: “The theme for the second half of 2020 will hopefully be one of continued recovery, however this will likely be unevenly spread across markets and regions.
“The harsher lockdown conditions in Victoria will have a significant impact on long-term growth, and we expect more ups and downs in the market as the outlook evolves.”
The research house also found that the median pension option rose an estimated 0.9% over the year to 31 August, 2020, while the growth option was up 1% and the capital stable option up 0.9%.