The median balanced option delivered a return of 1.5% in July according to estimates from leading superannuation research house SuperRatings, with funds continuing to build on the momentum in markets seen over the final quarter of FY23.
The impact of inflation continues to drive markets with most Australian and global equities delivering modest returns, while energy and commodities performed well over July. We expect returns will remain bumpy over the short term, despite the Reserve Bank of Australia taking a wait and see approach in both July and August following indications that the tightening cycle is beginning to have a clearer impact on spending and consumption.
The median growth option rose by an estimated 1.8%, while the median capital stable option delivered a small positive result, with an increase of 0.8%.
Accumulation returns to July 2023
|
Monthly |
1 yr | 3 yrs (p.a.) | 5 yrs (p.a.) | 7 yrs (p.a.) |
10 yrs (p.a.) |
|
| SR50 Balanced (60-76) Index | 1.5% | 7.2% | 7.8% | 5.9% | 6.7% | 7.2% |
| SR50 Capital Stable (20-40) Index | 0.8% | 3.6% | 3.2% | 3.1% | 3.7% | 4.5% |
| SR50 Growth (77-90) Index | 1.8% | 9.2% | 9.4% | 7.0% | 8.3% | 8.5% |
Source: SuperRatings estimates
Pension returns also increased in July, with the median balanced pension option up an estimated 1.7%. The median growth option is estimated to rise 2.0% for the month while the more defensive median capital stable pension option is estimated to deliver a 0.9% return.
Pension returns to July 2023
|
Monthly |
1 yr | 3 yrs (p.a.) | 5 yrs (p.a.) | 7 yrs (p.a.) |
10 yrs (p.a.) |
|
| SRP50 Balanced (60-76) Index | 1.7% | 8.2% | 8.5% | 6.6% | 7.6% | 8.0% |
| SRP50 Capital Stable (20-40) Index | 0.9% | 3.8% | 3.7% | 3.5% | 4.1% | 5.0% |
| SRP50 Growth (77-90) Index | 2.0% | 10.1% | 10.0% | 7.6% | 8.8% | 9.2% |
Source: SuperRatings estimates
Executive Director of SuperRatings, Kirby Rappell commented, “Funds have had a strong finish to FY23 with the median balanced fund returning 9.1% over the year to June and it is pleasing to see funds maintaining that momentum into the first month of FY24.”
With funds in the process of preparing annual statements, it is a great time to think about reviewing your superannuation arrangements. There are some simple rules of thumb to check including the level of fees you are paying, the performance of your investments and how much insurance cover you have.
If you are unsure of what settings are suitable for you, reach out to your fund to see what services they might offer to help you make these decisions or talk to a trusted adviser and remember to check if there is any cost associated with accessing these services before you agree to them.
Release ends
We welcome media enquiries regarding our research or information held in our database. We are also able to provide commentary and customised tables or charts for your use.
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
