While the Reserve Bank paused their increases to the cash rate in April after 10 consecutive rises, significant uncertainty remains over the direction of the federal funds rate. While markets may anticipate a pause; there has been no pause in volatility as half of the previous 8 months returns were negative, with further volatility remaining the outlook for the remainder of the financial year.

The median growth option also rose by an estimated 0.9% over March, while the median capital stable option rose by an estimated 1.0% for the month.

Pension accounts provided slightly better returns over the period, with the median balanced pension option rising an estimated 1.1%. The median capital stable pension option is also estimated to have gained 1.2% over the month while the median growth pension option is estimated to rise by a slightly smaller 0.9% for the same period.

“Super funds continue to demonstrate their ability to capture upside benefits for members when they are available in the market while managing for market volatility through diversification. As we edge closer to the end of the financial year the outlook feels slightly more stable, although there is still a chance that annual returns could drop back into negative territory depending on the final quarter of the financial year”, commented Executive Director of SuperRatings, Kirby Rappell. 

“While there has been significant ups and downs over each month in the year so far, superannuation remains a long term investment for most and these shifts have a much smaller impact when considering 10 year performance. Funds are well equipped to navigate changing markets, with 10 year performance estimated to be 7.4% and demonstrating resilience to date” Mr Rappell added.

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