Monthly superannuation returns turned negative for the month of February. Despite an uncertain environment, it was only the second negative monthly return for the financial year; however, it was clear that signs of discomfort were emerging as markets digested the looming risks of tariffs and the effects that may result in the global economy. Leading superannuation research house, SuperRatings, estimates the median balanced option fell by -0.8% in February.
Despite the Reserve Bank of Australia lowering interest rates in February, both Australian and international share markets, the key drivers of super fund returns, declined over the month as the incoming President’s agenda came into focus. The impact of tariffs on China and potential flow on effects to the Australian economy in particular influenced Australian share expectations, offsetting any potential benefit from the reduction in interest rates.
The median growth option fell by an estimated -1.2% over February, while the median capital stable option is estimated to deliver a small but positive 0.1% return to members.
Accumulation returns to 28 February 2025
| Monthly | FYTD | 1 yr | 3 yrs (p.a.) | 5 yrs (p.a) | 7 yrs (p.a.) | 10 yrs (p.a.) | |
|---|---|---|---|---|---|---|---|
| SR50 Balanced (60-76) Index | -0.8% | 7.2% | 9.3% | 6.7% | 7.1% | 6.9% | 6.7% |
| SR50 Capital Stable (20-40) Index | 0.1% | 5.2% | 6.6% | 4.1% | 3.8% | 4.0% | 4.1% |
| SR50 Growth (77-90) Index | -1.2% | 8.1% | 10.7% | 8.0% | 8.5% | 8.1% | 7.8% |
Pension returns followed accumulation return trends, with the median balanced pension option falling by an estimated -0.9%. The median capital stable pension option is estimated to match accumulation returns at 0.1% over the month, while the median growth pension option is estimated to fall by -1.4% for the same period.
Pension returns to 28 February 2025
| Monthly | FYTD | 1 yr | 3 yrs (p.a.) | 5 yrs (p.a) | 7 yrs (p.a.) | 10 yrs (p.a.) | |
|---|---|---|---|---|---|---|---|
| SR50 Balanced (60-76) Index | -0.9% | 7.9% | 10.5% | 7.5% | 7.9% | 7.7% | 7.5% |
| SR50 Capital Stable (20-40) Index | 0.1% | 5.7% | 7.2% | 4.6% | 4.3% | 4.5% | 4.7% |
| SR50 Growth (77-90) Index | -1.4% | 9.0% | 11.9% | 8.6% | 9.3% | 8.9% | 8.5% |
“Despite the result in February, funds have delivered around a 7% return so far this financial year. Provided funds can navigate the next few months well, members are currently on track for a positive return for FY2025.”, commented Executive Director of SuperRatings, Kirby Rappell.
“When markets are more turbulent, it is important to remember that for most of us superannuation is about long-term outcomes and to focus on maintaining a long-term strategy. For any members that are concerned about their fund’s performance it may be helpful to seek advice before making a decision. Advice services are often available through the fund, or they can seek professional financial advice, just remember to confirm if there are any costs involved before proceeding with the advice”.
Release ends
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For more information contact:
Kirby Rappell
Executive Director
Tel: 1300 826 395
Mob: +61 408 250 725
Kirby.Rappell@superratings.com.au
Require further information? Simply visit www.superratings.com.au.
