Super funds end 2019/20 in negative territory

The median balanced option lost 1.2% over the past 12 months based on funds returning 0.8% in June, according to SuperRatings.  

SuperRatings noted that while the financial year result would be negative it was a relatively “mild drop” compared to previous years in which super had taken a hit. 

SuperRatings executive director, Kirby Rappell, said: “Super funds made a strong comeback in the June quarter, but the market remains challenging due to the degree of uncertainty surrounding the COVID-19 pandemic. 

“While markets have shown signs of stabilising, which is good news for members, although we don’t want to get ahead of ourselves. Members want to see a sustainable recovery in their balance, rather than a rapid rebound followed by another dip. Slow and steady is the way to rebuild.” 

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The research house also found that since the start of 2020, the median balanced option has fallen 5.1%, while the median growth option is down 6.7%. The capital stable option, which includes more defensive assets like bonds and cash, has fared relatively better, falling only 1.6%. 

The median balanced pension option down 0.8%, over the financial year, compared to a fall of 1.4% in the median growth option and 0.5% in the capital stable option. 

“For members, it means they will need to be prepared for some more ups and downs. However, a patient approach has paid off for members over the long term with the median balanced style,” Rappell said.