Superannuation funds started 2021 modestly with the median balanced option and median growth option both returning 0.4% in January, according to SuperRatings.
SuperRatings data also found the median capital stable option was at 0.1% for the month, while the median balanced pension option returned 0.3%, the median pension growth option returned 0.4%, and the median capital stable option returned 0.1%.
January’s result marked the 10th consecutive month of gains for funds.
Super Ratings executive director, Kirby Rappell, said: “Super funds have had a promising start to 2021, but the pandemic isn’t over yet.
“Movements in financial markets are still closely tied to how governments are managing new COVID-19 cases, as well as the timing and efficacy of vaccines. In short, we expect more ups and downs in the market, and super funds are not immune.”
Rappell said that funds were focused on the risks and opportunities that lay ahead and to date they had shown their ability to manage their investment positions and provide the additional support to members.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
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