Super funds made a positive start to 2021, registering the 10th consecutive month of gains. However, gains were slim.

According to SuperRatings data, the median balanced and median growth options both returned an estimated 0.4 per cent in January, while the median capital stable option was flat at 0.1 per cent. Over the 2021 financial year to date, the median balanced option returned 9.1 per cent, reflecting the strength and speed of the recovery in the second half of 2020.

SuperRatings reports that as Victoria emerges from a snap five-day lockdown and other state governments increase testing and tracing efforts in the face of the ‘UK COVID variant’, markets are still exposed to potential downside risk.

Despite good news on the vaccine front, it will take time for vaccines to be distributed nationwide to every demographic, SuperRatings says. Until then, members should be ready for a bumpy ride in 2021.

SuperRatings executive director Kirby Rappell says: “Super funds have had a promising start to 2021, but the pandemic isn’t over yet.

“Movements in financial markets are still closely tied to how governments are managing new COVID-19 cases, as well as the timing and efficacy of vaccines. In short, we expect more ups and downs in the market, and super funds are not immune.”