Following an end of year rally in December, super funds have made a good start to 2024 with leading superannuation research house SuperRatings estimating the median balanced option generated a return of 1.1% in January.
The trajectory of inflation and associated shifts in interest rates remain key areas of conjecture, although they will remain a significant story this year. Funds continue to demonstrate their strong investment capabilities in the face of unpredictable markets with the positive return pushing estimated financial year to date returns to 4.9% with five months left in the year.
The median growth option increased by an estimated 1.3% in January, while the median capital stable option delivered a modest 0.5% return to members.
Accumulation returns to January 2024
| Monthly | 1 yr | 3 yrs (p.a.) |
5 yrs (p.a.) |
7 yrs (p.a.) |
10 yrs (p.a.) |
|
| SR50 Balanced (60-76) Index | 1.1% | 7.6% | 6.2% | 6.8% | 6.8% | 7.0% |
| SR50 Capital Stable (20-40) Index | 0.5% | 5.0% | 2.9% | 3.7% | 3.9% | 4.6% |
| SR50 Growth (77-90) Index | 1.3% | 9.1% | 7.4% | 8.3% | 8.2% | 8.3% |
Source: SuperRatings estimates
Pension returns also rose over January, with the median balanced pension option up an estimated 1.1%. While an increase of 1.4% was estimated for the median growth option and a smaller 0.5% for the median capital stable pension option.
Pension returns to January 2024
| Monthly | 1 yr | 3 yrs (p.a.) |
5 yrs (p.a.) |
7 yrs (p.a.) |
10 yrs (p.a.) |
|
| SR50 Balanced (60-76) Index | 1.1% | 8.6% | 6.8% | 7.6% | 7.7% | 7.8% |
| SR50 Capital Stable (20-40) Index | 0.5% | 5.5% | 3.2% | 4.0% | 4.4% | 5.1% |
| SR50 Growth (77-90) Index | 1.4% | 10.0% | 8.1% | 9.1% | 9.0% | 9.1% |
Source: SuperRatings estimates
“Funds continue to capitalise on the strong momentum in markets as they enter 2024. While returns so far are looking more modest than last year’s strong rebound, super funds remain well positioned to deliver a good result to members in the face of ongoing uncertainty”, commented Executive Director of SuperRatings, Kirby Rappell. “With continued ups and downs expected, we encourage members to remain focused on long term performance.”
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
