August was a turbulent month for markets, leading to some swings in superannuation returns with a strong downturn in the first two weeks followed by a swift recovery. Overall funds managed a small gain for members with leading superannuation research house SuperRatings estimating that the median balanced option returned 0.4% to members over August.
“The first two months of the new financial year have seen greater volatility returning” commented Kirby Rappell, Executive Director of SuperRatings. “Share markets have had a strong impact on fund returns. However, the need to focus on long term outcomes rather than getting caught up in daily movements is as important as ever.”
The median growth option grew by an estimated 0.3% in August, while the median capital stable option, buffered by a lower exposure to shares rose an estimated 0.5%.
Accumulation returns to 31 August 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 | 0.4% | 2.4% | 10.0% | 4.5% | 6.5% | 6.9% | 7.0% |
| SR50 Capital Stable (20-40) Index | 0.5% | 1.9% | 6.7% | 2.7% | 3.5% | 4.0% | 4.4% |
| SR50 Growth (77-90) Index | 0.3% | 2.6% | 11.7% | 5.3% | 7.9% | 8.4% | 8.4% |
Source: SuperRatings estimates
Pension returns followed a similar pattern, with the median balanced pension option increasing by an estimated 0.4%. The median capital stable pension option is estimated to rise 0.6% over the month while the median growth pension option is estimated to rise 0.3% for the same period.
Pension returns to 31 August 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 | 0.4% | 2.6% | 11.1% | 5.0% | 7.3% | 7.8% | 7.9% |
| SRP50 Capital Stable (20-40) Index | 0.6% | 2.1% | 7.3% | 2.9% | 3.9% | 4.5% | 4.9% |
| SRP50 Growth (77-90) Index | 0.3% | 2.9% | 12.9% | 5.8% | 8.6% | 9.2% | 9.1% |
Source: SuperRatings estimates
As we continue to expect balances to rise and fall, whether members should take any action around their investment choice will depend on their personal risk appetite and the time left until they need to start drawing down on their super balance. For anyone concerned about their super balance and how it will perform most funds have a range of education and tools available on their websites. Some funds will also provide members access to financial advice, however it’s important to check if there is any cost associated with using advice services.
“Superannuation is a long-term investment for most and funds have consistently delivered good long term outcomes” continued Mr Rappell. “However, for those worried about how their super is doing in these conditions there are a lot of resources available to support members in making the choice most suitable for their situation.”.
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.
