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MySuper products show resilience

August marked the fifth consecutive month of positive returns for MySuper products since the COVID-19 pandemic hit, recovering 70% of losses, new Rainmaker analysis shows.

Last month generated a positive performance of about 1.7% for superannuation fund members invested in the default option, according to the research firm's MySuper single strategy index.

The index comprises 20 not-for-profit MySuper products, representing 70% of this market. The index has essentially reverted to where it was just 11 months ago (see Figure 1).

Over a rolling three-year period, returns hit 5.6% per annum. Over a rolling 12-month period, the index registered gains of about 0.8% p.a., up from -1.6%p.a. at the end of July.

MySuper assets lost 13% of its value over Feb and March. But between April to August, it earned 9%. It is currently down 4% from its January 2020 peak.

Rainmaker executive director of research Alex Dunnin commented on how superannuation continues to be resilient despite the COVID-19 economic meltdown.

"While it may not be due to the super funds themselves, but rather what's going on in financial markets, it shows that most super funds are doing their jobs and maximising investment returns for their members," he said.

Equities were particularly upbeat in August. The ASX returned 2.8%, international equities was up 3.5%, while A-REITs jumped 7.9% at the end of the month.

Australian bonds (-0.9%) and international bonds (-0.7%) however, did not perform as well, while cash and direct property were flat for the month.

Read more: MySuperRainmakerSuperannuationAlex Dunnin
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