The median balanced superannuation fund rose 1.1% in May as investor confidence remained high despite vaccinations lag and snap lockdowns in the country, according to SuperRatings.
The research house’s latest data found the median growth option rose 1.3%, and the median stable option rose an estimated 0.6%.
It also found over the 2020-21 financial year-to-date, the median balanced option returned 15.8%, to position funds to end the financial year on a high.
The median balanced pension option returned 1.3% during the month of May and 17.1% over the financial year-to-date. The median pension growth option returned 1.4% during the month, and the median capital stable option gained an estimated 0.6%.
SuperRatings executive director, Kirby Rappell, said: “As we reflect on the financial year to date, May is the eleventh month in a row we have seen a positive result for the median balanced fund and we are on track to see a double-digit return for the year ending 30 June, 2021.
“While strong performance this year is pleasing, market volatility prevails and we are erring on the side of caution in terms of the future outlook, with equity markets likely to provide investors with a bumpy ride. Further with rates remaining at record lows, more defensive assets such as cash and bonds have delivered meagre returns, which is impacting retirees’ incomes.”
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
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