Super returns maintained their momentum over the month as confidence that inflation is coming under control continued to build. Leading superannuation research house SuperRatings estimates that the median balanced option generated a return of 1.8% for February.
This brings the return to an estimated 6.7% for the median balanced option after the first 8 months of the financial year, which is a pleasing outcome given market uncertainty. “Superannuation funds have had a strong run since late last year with the positive February result was the fourth consecutive month of gains” commented Kirby Rappell, Executive Director of SuperRatings.
The median growth option gained an estimated 2.3% for the month, while the median capital stable option also rose by an estimated 0.7%.
Accumulation returns to February 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 | 1.8% | 6.7% | 10.2% | 6.5% | 6.7% | 7.0% | 7.0% |
| SR50 Capital Stable (20-40) Index | 0.7% | 4.3% | 6.2% | 3.3% | 3.7% | 3.9% | 4.5% |
| SR50 Growth (77-90) Index | 2.3% | 7.9% | 12.0% | 7.7% | 8.1% | 8.4% | 8.2% |
Source: SuperRatings estimates
Pension returns also grew over February, with the median balanced pension option increasing by an estimated 1.9%. The median capital stable pension option is estimated to have grown by 0.7% over the month while the median growth pension option is estimated to increase by a 2.5% for the same period.
Pension returns to February 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% | 7.5% | 11.4% | 7.1% | 7.4% | 7.8% | 7.8% |
| SR50 Capital Stable (20-40) Index | 0.7% | 4.7% | 6.9% | 3.6% | 3.9% | 4.3% | 5.1% |
| SR50 Growth (77-90) Index | 2.5% | 8.8% | 13.4% | 8.4% | 8.8% | 9.1% | 9.0% |
Source: SuperRatings estimates
“While the trajectory of inflation and central bank interest rates maintains market uncertainty, super funds continue to deliver gains for member balances, supporting stronger retirement outcomes. Super fund returns remain much less volatile than equity markets demonstrating the benefits of diversification and the ability of funds to weather these markets conditions with competitive outcomes for their members.”, continued Executive Director of SuperRatings, Kirby Rappell.
“For those members thinking about changing their investment option it is important to consider how long they will be investing for and the level of risk they are willing to take on. Members should seek advice from their fund or a trusted adviser before making changes to their investment strategy.” Mr Rappell added.
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
