Historically September has been a more subdued month for superannuation returns, however funds have delivered for members this year with superannuation research house SuperRatings estimating that the median balanced option returned 1.1% to members over the month. This year’s September return is expected to be the first-time in five years that most funds returns will deliver a boost to member balances over the month. The result brings the estimated return for the first quarter of the financial year to 3.4% for the median balanced option which would make it the strongest first quarter return since 2013, demonstrating the general resilience of funds through uncertain environments.
“September saw markets continue their onward march, with greater expectation of rate cuts supporting returns” commented Kirby Rappell, Executive Director of SuperRatings. “However, the path for for rates in Australia remains less clear. With the escalation of conflicts in the Middle East and a close race in the US presidential election, the path for super fund returns remains uncertain.”
The median growth option grew by an estimated 1.3% in September, while the median capital stable option grew by a more modest 0.8%, with some volatility likely.
Accumulation returns to 30 September 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 | 1.1% | 3.4% | 13.2% | 5.2% | 6.4% | 7.0% | 7.2% |
| SR50 Capital Stable (20-40) Index | 0.8% | 2.7% | 8.6% | 3.2% | 3.5% | 4.0% | 4.5% |
| SR50 Growth (77-90) Index | 1.3% | 3.8% | 15.7% | 6.2% | 7.8% | 8.4% | 8.6% |
Pension returns also rose over the month, with the median balanced pension option increasing by an estimated 1.2%. The median capital stable pension option is estimated to rise 0.9% over the month while the median growth pension option is estimated to rise 1.4% for the same period.
Pension returns to 30 September 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 | 1.2% | 3.9% | 14.7% | 5.8% | 7.3% | 7.9% | 8.1% |
| SR50 Capital Stable (20-40) Index | 0.9% | 2.9% | 9.3% | 3.6% | 4.0% | 4.5% | 5.0% |
| SR50 Growth (77-90) Index | 1.4% | 4.3% | 17.1% | 6.8% | 8.6% | 9.2% | 9.3% |
“Funds have built up a solid start to FY25 over the first three months of the year, however global tensions are rising and there is plenty of opportunity for members to see their balance go up and down over the coming months” continued Mr Rappell.
“For most of us, super is a long-term investment, and we encourage members to formulate and stick to a long-term plan that is suitable for them. Funds provide a range of education, tools and advice that can help members work out a suitable strategy, or members can seek independent financial advice, just make sure to check on and be comfortable with any cost for advice before going ahead.”
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.
