Super funds dip in February, March will be better

Superannuation funds continued to deliver bad news in February, but there is some bright news on the horizon – March should see the first positive returns in the best part of a year.

According to research firm SuperRatings, the average balanced fund option posted a fall of 3.66% in February, taking the fall in the financial year to date to 18.32%.

In the past 12 months, the average fund has fallen by just over 19% and returns over the past three years are now -3.5%.

But super fund members can look forward to March’s official results, with SuperRatings managing director Jeff Bresnahan tipping gains of around 4% thanks to a mini sharemarket rally around the globe.

But Bresnahan says the sharp turnaround from February to March should send fund members a clear message about hastily jumping out of one super option (shares) and moving into another, potentially safer option (cash).

“This March mini rally has surprised many by both its timing and degree. So for those who switched at the end of February to cash, their minds must be spinning over just what to do next.”

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