Funds faced a tougher market over October with superannuation research house SuperRatings estimating that the median balanced option returned 0.2% to members over the month. Most asset classes reported negative returns with international shares and cash the only major asset classes likely to deliver positive returns. For Balanced and Growth style options, their international share exposure proved to be just enough to avoid a negative return for the month, however more defensive options dipped into the red as both fixed interest and property fell.
“We saw a significant slowdown over October as markets absorbed interest rate announcements and awaited the outcome of presidential elections in the US” commented Kirby Rappell, Executive Director of SuperRatings. “Funds’ strong diversification strategies served them well over the period month, with losses in some asset classes being offset by gains in others.”
The median growth option grew by an estimated 0.4% in October, while the median capital stable option, with limited exposure to international shares fell by -0.3%.
Accumulation returns to 31 October 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 | 0.2% | 3.7% | 15.2% | 5.2% | 6.5% | 6.7% | 7.1% |
| SR50 Capital Stable (20-40) Index | -0.3% | 2.4% | 9.1% | 3.1% | 3.4% | 3.8% | 4.4% |
| SR50 Growth (77-90) Index | 0.4% | 4.2% | 18.1% | 6.0% | 7.8% | 8.1% | 8.4% |
Pension returns mirrored the accumulation results, with the median balanced pension option increasing by an estimated 0.2%. The median capital stable pension option is estimated to fall -0.4% over the month while the median growth pension option is estimated to rise 0.4% for the same period.
Pension returns to 31 October 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 | 0.2% | 4.1% | 16.8% | 5.7% | 7.3% | 7.5% | 7.9% |
| SRP50 Capital Stable (20-40) Index | -0.4% | 2.6% | 10.0% | 3.4% | 3.9% | 4.3% | 4.9% |
| SRP50 Growth (77-90) Index | 0.4% | 4.6% | 20.0% | 6.5% | 8.5% | 8.8% | 9.2% |
“Funds have now delivered positive returns to members invested in Balanced (60-76) options, where most Australians are invested, for six consecutive months” continued Mr Rappell. “However, with the Reserve Bank of Australia holding interest rates steady, and the re-election of Donald Trump as President, we can see that members should be prepared to see ongoing ups and downs in their balances. Despite the challenges, super returns have had a strong start to the financial year and continue to deliver for members over the long term.”
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.
