After a strong FY24 result, super funds made a good start to the new financial year with leading superannuation research house SuperRatings estimating that the median balanced option returned 1.9% to members over July. However, markets quickly shed those gains in the first two weeks of August.
“We saw returns retaining their momentum from last financial year in July, setting up a good start to FY25” commented Kirby Rappell, Executive Director of SuperRatings. “However, markets have since seen a strong sell off leading to an estimated -1.7% return for balanced options over the first two weeks of August, which has largely given back the July result.”
The median growth option grew by an estimated 2.4% in July, while the median capital stable option, rose by a more modest 1.3%.
Accumulation returns to 31 July 2024
| Monthly | FYTD | 1 yr | 3 yrs (p.a.) | 5 yrs (p.a.) | 7 yrs (p.a.) | 10 yrs (p.a.) | |
| SR50 Balanced (60-76) Index | 1.9% | 1.9% | 9.4% | 5.0% | 6.2% | 6.9% | 7.1% |
| SR50 Capital Stable (20-40) Index | 1.3% | 1.3% | 6.1% | 2.8% | 3.4% | 4.1% | 4.5% |
| SR50 Growth (77-90) Index | 2.4% | 2.4% | 11.2% | 6.1% | 7.7% | 8.6% | 8.4% |
Pension returns followed a similar pattern, with the median balanced pension option increasing by an estimated 2.2%. The median capital stable pension option is estimated to rise 1.5% over the month, while the median growth pension option is estimated to rise 2.5% for the same period.
Pension returns to 31 July 2024
| Monthly | FYTD | 1 yr | 3 yrs (p.a.) | 5 yrs (p.a.) | 7 yrs (p.a.) | 10 yrs (p.a.) | |
| SRP50 Balanced (60-76) Index | 2.2% | 2.2% | 10.6% | 5.5% | 7.1% | 7.8% | 8.0% |
| SRP50 Capital Stable (20-40) Index | 1.5% | 1.5% | 6.8% | 3.1% | 3.8% | 4.5% | 4.9% |
| SRP50 Growth (77-90) Index | 2.5% | 2.5% | 12.3% | 6.5% | 8.3% | 9.2% | 9.2% |
With the Reserve Bank of Australia holding interest rates steady and share markets in the midst of an episode of volatility, it is reinforcing the need to focus on the long term. “Despite a good start in July, funds are now practically back to where they were at the start of the financial year. We expect to see continued ups and downs for fund returns over the coming months as central banks respond to changes in conditions and significant geopolitical events play out”, continued Mr Rappell. “However, funds have consistently proven their ability to deliver over the long term and we encourage members to focus on blocking out short term noise in favour of longer-term outcomes”.
Release ends
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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.
