Media releases Archives

Media release: Super balances see continued growth in March

Super funds once again delivered a boost to members in March with another month of investment gains. Leading superannuation research house SuperRatings estimates that the median balanced option generated a return of 1.9% for March. This takes the estimated return for the first 9 months of the financial year to 8.8%, making a double digit return a possibility depending on outcomes for the final quarter.

Super returns have proven resilient over the year so far with consistent positive performance driven by strong share markets both in Australia and internationally. “We have continued to see fund balances grow, despite ongoing uncertainty over the inflation outlook both here and abroad” 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 1.1%.

Accumulation returns to 31 March 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%	8.8%	11.2%	6.5%	6.9%	7.1%	7.3%
SR50 Capital Stable (20-40) Index	1.1%	5.4%	6.3%	3.3%	3.7%	4.0%	4.6%
SR50 Growth (77-90) Index	2.3%	10.5%	13.40%	7.7%	8.4%	8.4%	8.5%

Source: SuperRatings estimates

Pension returns also grew over March, with the median balanced pension option increasing by an estimated 2.2%. The median capital stable pension option is estimated to have grown by 1.2% over the month while the median growth pension option is estimated to increase by a 2.6% for the same period.

Pension returns to 31 March 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	2.2%	9.9%	12.5%	7.0%	7.7%	7.8%	8.1%
SR50 Capital Stable (20-40) Index	1.2%	6.0%	7.1%	3.5%	4.0%	4.4%	5.1%
SR50 Growth (77-90) Index	2.6%	11.6%	15.0%	8.3%	9.2%	9.2%	9.4%

Source: SuperRatings estimates

Reflecting on Superannuation balances rebound since COVID

The following chart displays the change in the superannuation balance of a member who had $50,000 in their super account at the beginning of January 2020, before the COVID pandemic began to influence markets.

Assuming no additional contributions or deductions other than investment fees and taxes, a member who had $50,000 invested in the median balanced option at the beginning of 2020 would now have $64,406, while a member investing solely in an International Shares option would have $74,888 and a member who invested in cash would have a balance of $53,244. When measured from the depths of the COVID pandemic, the median international shares option within a super fund has returned 69% or 17% per annum since the lowest point of the pandemic, further highlighting the need for a long-term view on super.

While investing in international shares has provided the highest growth, what can also be seen is the additional uncertainty in account balance each month with the international share index displaying the largest ups and downs over the period.

“The COVID pandemic was a major event for financial markets around the world and while balances have recovered, we continue to see greater ups and downs in returns than prior to the pandemic” commented Mr Rappell. “With the benefit of hindsight, it is fair to say that we didn’t expect the strength of the returns experienced since the depths of the pandemic. With a decent chance of strong returns for financial year 2024, most members will be pleased to see their retirement savings growing, however the ups and downs are expected to remain, and we encourage members to focus on long term outcomes when reviewing their retirement settings”.

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

April 15, 2024/by Kirby Rappell

Media release: Super returns continue their advance in February

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

March 6, 2024/by Kirby Rappell

Lonsec Retirement Perspectives, Media releases

Media release: Market maintains momentum into 2024

Following an end of year rally in December, super funds have made a good start to 2024 with leading superannuation research house SuperRatings estimating the median balanced option generated a return of 1.1% in January.

The trajectory of inflation and associated shifts in interest rates remain key areas of conjecture, although they will remain a significant story this year. Funds continue to demonstrate their strong investment capabilities in the face of unpredictable markets with the positive return pushing estimated financial year to date returns to 4.9% with five months left in the year.

The median growth option increased by an estimated 1.3% in January, while the median capital stable option delivered a modest 0.5% return to members.

Accumulation returns to January 2024

	Monthly	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%	7.6%	6.2%	6.8%	6.8%	7.0%
SR50 Capital Stable (20-40) Index	0.5%	5.0%	2.9%	3.7%	3.9%	4.6%
SR50 Growth (77-90) Index	1.3%	9.1%	7.4%	8.3%	8.2%	8.3%

Source: SuperRatings estimates

Pension returns also rose over January, with the median balanced pension option up an estimated 1.1%. While an increase of 1.4% was estimated for the median growth option and a smaller 0.5% for the median capital stable pension option.

Pension returns to January 2024

	Monthly	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%	8.6%	6.8%	7.6%	7.7%	7.8%
SR50 Capital Stable (20-40) Index	0.5%	5.5%	3.2%	4.0%	4.4%	5.1%
SR50 Growth (77-90) Index	1.4%	10.0%	8.1%	9.1%	9.0%	9.1%

Source: SuperRatings estimates

“Funds continue to capitalise on the strong momentum in markets as they enter 2024. While returns so far are looking more modest than last year’s strong rebound, super funds remain well positioned to deliver a good result to members in the face of ongoing uncertainty”, commented Executive Director of SuperRatings, Kirby Rappell. “With continued ups and downs expected, we encourage members to remain focused on long term performance.”

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

February 9, 2024/by Kirby Rappell

Media releases

Media Release: Super funds sail through the storm in 2023

Despite returns swinging between positive and negative throughout the year, super funds delivered strong returns for members over 2023, boosted by a share rally in the final quarter of the calendar year. The median Balanced option reported a 2.7% return in December, and 9.6% for the full 2023 calendar year, fully recovering the
-4.8% loss from the previous year.

Accumulation returns to 31 December 2023

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	2.7%	9.6%	5.9%	7.1%	6.7%	6.8%
SR50 Capital Stable (20-40) Index	2.0%	6.5%	2.8%	3.9%	3.9%	4.4%
SR50 Growth (77-90) Index	3.0%	11.0%	7.0%	8.6%	7.9%	7.9%

Source: SuperRatings estimates

The median growth option returned 3.0% in December and 11.0% over the year, while a smaller allocation to shares resulted in the median capital stable option returning 2.0% for the month and 6.5% across the year.

International shares have been the standout performer over the year, led by strong growth in technology shares. Returns were also strongly supported by Australian shares and further bolstered by rising cash rates improving fixed interest and cash returns.

*Balances are based on monthly SR Index returns and assume no additional contributions over the investment period. Returns are calculated net of investment fees and taxes but do not consider administration fees or other potential deductions from member’s accounts.

Funds have also delivered for members over the longer term. An investment of $100,000 in the median balanced option 10 years ago would now be worth $189,005 while investing in the median growth option would now be worth $201,539. Members who invested in cash would have $117,637.

The highest SuperRatings Balanced Index returns over the year was 13.2% for members in the Hostplus – Indexed Balanced option, closely followed by Brighter Super Optimiser Accumulation – Multi-Manager Growth Fund returning 13.1% while ESSSuper – Balanced Growth completes the top 3 returning 12.8%.

Top 20 balanced options over 12 months to 31 December 2023

Rank	Option Name	1 Year %	10 Year % PA
1	Hostplus – Indexed Balanced	13.2	7.3
2	Brighter Super Optimiser Accumulation – Multi-Manager Growth Fund	13.1	–
3	ESSSuper – Balanced Growth	12.8	–
4	CFS-FC Wholesale Personal – CFS Enhanced Index Balanced	11.9	6.5
5	Vision Super – Balanced Growth	11.7	7.5
6	IOOF Employer Super Core – MLC MultiSeries 70	11.4	6.8
7	Aware Super Future Saver – Balanced	11.0	7.2
8	GESB Super – My GESB Super Plan	10.7	6.3
9	TWUSUPER – Balanced	10.6	6.7
10	HESTA – Balanced Growth	10.5	7.4
11	ANZ Smart Choice Super – Growth	10.4	6.0
12	UniSuper – Balanced	10.3	7.8
13	Prime Super – MySuper	10.3	7.1
14	Australian Retirement Trust – Super Savings – Balanced	10.2	7.9
15	NESS – NESS MySuper	10.2	6.6
16	Raiz Super – Moderately Aggressive	10.2	–
17	REI Super – Balanced	10.2	6.5
18	Equip Super MyFuture – Balanced Growth	10.2	7.2
19	Brighter Super Accumulation – Balanced	10.1	6.8
20	smartMonday PRIME – Balanced Growth – Active	10.1	6.3
	SR50 Balanced (60-76) Index	9.6	6.8

*Performance tables are based on options included in the SR50 Balanced Index and do not represent all Balanced (60-76) options offered by superannuation funds. Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings.

Superannuation remains a long-term investment for most, with many members having several decades of returns before retirement. It is therefore important to remain focused on longer term returns, with the top performing funds over 10 years listed below.

The Hostplus – Balanced option remains the top performer over the long-term, with an average annual return of 8.3%, and is the only fund in our index with a higher than 8% annual return over 10 years.

Top 20 balanced options over 10 years to 31 December 2023

Rank	Option Name	1 Year %	10 Year % pa
1	Hostplus – Balanced	8.5	8.3
2	AustralianSuper – Balanced	9.0	7.9
3	Australian Retirement Trust – Super Savings – Balanced	10.2	7.9
4	UniSuper – Balanced	10.3	7.8
5	Cbus – Growth (MySuper)	9.5	7.6
6	Vision Super – Balanced Growth	11.7	7.5
7	CareSuper – Balanced	9.0	7.5
8	HESTA – Balanced Growth	10.5	7.4
9	Spirit Super – Balanced (MySuper)	10.0	7.4
10	Hostplus – Indexed Balanced	13.2	7.3
11	Australian Food Super Employer – Balanced	9.5	7.3
12	Aware Super Future Saver – Balanced	11.0	7.2
13	First Super – Balanced	9.4	7.2
14	Equip Super MyFuture – Balanced Growth	10.2	7.2
15	Qantas Super – Growth	8.8	7.1
16	Prime Super – MySuper	10.3	7.1
17	IOOF Employer Super Core – MLC MultiActive Balanced	9.4	7.0
18	TelstraSuper Corporate Plus – Balanced	8.9	6.9
19	Australian Ethical Personal – Balanced	9.7	6.9
20	BUSSQ Premium Choice – Balanced Growth	8.8	6.9
	SR50 Balanced (60-76) Index	9.6	6.8

*Performance tables are based on options included in the SR50 Balanced Index and do not represent all Balanced (60-76) options offered by superannuation funds. Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings.

With shares driving most of 2023’s returns, passive investment options, where a fund tracks a specified index, performed well over the year. The table below displays the top 10 passive fund returns over 2023 and over 5 years, with most of these options having been available within superannuation for a shorter length of time.

Top 10 balanced passive options over 12 months to 31 December 2023

Rank	Option Name	1 Year %	10 Year % pa
1	Aware Super Future Saver – Balanced Indexed	14.3	–
2	Rest – Balanced Indexed	13.5	8.4
3	HESTA – Indexed Balanced Growth	13.3	–
4	Hostplus – Indexed Balanced	13.2	8.4
5	netwealth Super Accelerator Core Emp – Index Opportunities Growth Fund	13.1	6.7
6	Australian Retirement Trust – Super Savings – Balanced Index	12.9	7.9
7	ClearView WealthFoundations Super – IPS Index Base 70	12.9	–
8	Brighter Super Accum – Indexed Balanced	12.8	–
9	Cbus – Indexed Diversified	12.7	–
10	AustralianSuper – Indexed Diversified	12.5	8.1

*Performance tables are based on passive options with a growth asset allocation between 60%-76%. Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings.

As we have seen MySuper offerings develop in recent years, it is also worthwhile to note that lifecycle funds had a strong year. These funds reduce members exposure to growth assets, generally from around age 45-55, and therefore have a higher exposure to growth assets than Balanced options. With growth assets performing well, these options have done well for members in 2023.

We have taken a representative cohort below, showing the returns expected to have been realised for younger members (<45 years old) in these products.

Lifecycle performance over 12 months to 31 December 2023

RANK	LIFECYCLE	OPTION TYPE	GROWTH ASSETS	1 YEAR %	5 YEAR % PA
1	GuideSuper & Child Care MySuper – Building Lifestage	High Growth (91-100)	98	14.8	9.0
2	Vanguard MySuper – Lifecycle Age 47 and under	Growth (77-90)	90	14.7	–
3	Virgin Money Super – LifeStage Tracker Born 1979 – 1983	Growth (77-90)	90	14.4	9.2
4	Essential Super MySuper – Lifestage 1980-84	High Growth (91-100)	93	13.8	7.9
5	CFS FC MySuper – Lifestage 1980-84	High Growth (91-100)	93	13.6	7.9
6	Mine Super MySuper – Lifecycle Investment Strategy Age 50 and Under	High Growth (91-100)	98	13.6	9.3
7	Russell iQ Super MySuper – MySuper GoalTracker Age < 50	High Growth (91-100)	95	13.3	–

*Table above shows lifecycle funds tracked by SuperRatings. Representative cohort above is for members 40-45 years old. Returns for younger members in these solutions are generally comparable to those above.

The table above shows that we are seeing greater levels of competition across the market, which is a good thing for consumers. While we have seen mixed outcomes for lifecycle since 2014, it is pleasing to see the renewed competition coming to market for default members in these solutions. Generally, these funds have higher allocations to listed equities, which has supported their performance outcomes in 2023.

While we see inflation slowing into 2024, as the impact of the interest rate rises throughout 2023 softens consumer demand, we expect to see continued ups and downs, as markets remain sensitive to local and global events. The new year is a good time for members to consider the level of ups and downs they are willing to tolerate and do a health check on their fund across performance, fees and insurance.

2023 was another eventful year for Australia’s superannuation members, with funds navigating a range of market environments and shocks as well as ongoing and expanded scrutiny of how well their investments are performing.

We have seen a slowing of funds merging and investment menus consolidating with a significant number of funds now well into their journey towards realising merger benefits and, hopefully, being able to pass those back to members through better servicing and investment performance. In our latest review we rated over 400 superannuation products. Our product ratings are accessible on our website here.

SuperRatings Executive Director Kirby Rappell said, “Members are likely pleased with this year’s performance, with most seeing a full recovery from last year’s losses. Long term strategy and high levels of diversification continue to result in impressive long-term performance by those managing our retirement savings. As we look ahead to what 2024 might bring for super fund returns, ongoing uncertainty means it remains important to set a strategy and stick with it despite the potential for periods of falling balances.”

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

January 19, 2024/by Joshua Lowen

Lonsec Retirement Perspectives, Media releases

Media release: Super fund returns bounce back in November

Expectations of peak inflation drove positive returns across most sectors of the market in November, leading to a bounce in returns following the subdued earnings reported between August and October. Leading research house SuperRatings estimates the median balanced option will deliver a return of 3.1% for the month of November.

“Despite the uncertainties around inflation, markets, and rates, we have seen funds recording strong returns into Christmas.” commented Kirby Rappell, Executive Director of SuperRatings.

The median growth option similarly experienced a strong month with an estimated 3.5% gain, while the median capital stable option experienced a more modest return of 2.0% owing to a lower exposure to shares.

Accumulation returns to November 2023

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	3.1%	4.6%	5.3%	6.4%	6.5%	6.6%
SR50 Capital Stable (20-40) Index	2.0%	3.1%	2.2%	3.5%	3.7%	4.3%
SR50 Growth (77-90) Index	3.5%	5.3%	6.5%	7.7%	7.9%	7.8%

Source: SuperRatings estimates

November’s strong performance was also reflected in pension returns, with the median balanced pension option returning an estimated 3.4%. The median growth option is estimated to see a gain of 3.9% for the month, while the median capital stable pension option is estimated to deliver a 2.3% return.

Pension returns to November 2023

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	3.4%	5.0%	5.8%	7.2%	7.5%	7.5%
SR50 Capital Stable (20-40) Index	2.3%	3.4%	2.7%	3.9%	4.1%	4.5%
SR50 Growth (77-90) Index	3.9%	6.0%	6.8%	8.5%	8.7%	8.6%

Source: SuperRatings estimates

The estimated gains in November are set to recover most of the losses over the last few months, setting up a modest, but positive, scene for most members as they approach the halfway point of the financial year. SuperRatings estimates the median fund will provide members with a 1.0% gain for the first 5 months of the financial year.

Despite modest returns over the second half of the year, funds are on track to deliver a 6.8% return after the first 11 months of the calendar year for the median balanced option. While the final result will be dependent on December performance, members are expected to see a reasonable positive return for calendar year, which may be similar to the estimated 6.4% p.a. for the median balanced option since 2000.

“We continue to believe that inflation will be a strong driver of markets in 2024, coupled with softening consumer demand; however, most members should remain reassured by super funds ability to navigate the range of market conditions we’ve seen over the past few years.” commented Mr Rappell. “December has been more mixed for shares so far, however there is still potential for a Santa rally in the second half of the month, and we encourage members to remain focused on their long-term outcomes.”

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

December 11, 2023/by Kirby Rappell

Lonsec Retirement Perspectives, Media releases

Media release: October sees further super return volatility

Leading research house SuperRatings estimates October will see super funds post negative investment performance for the third consecutive month, with the median balanced option expected to post a return of -1.6% for the month of October.

“We have observed continued uncertainty around global markets and inflation, which has weighed on returns from shares,” commented Kirby Rappell, Executive Director of SuperRatings.

The median growth option similarly experienced a negative return of an estimated -1.9%, while the median capital stable option experienced a more modest decline of -0.8% owing to a lower exposure to shares.

Accumulation returns to October 2023

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	-1.6%	4.2%	5.9%	5.7%	6.3%	6.5%
SR50 Capital Stable (20-40) Index	-0.8%	2.9%	2.2%	3.0%	3.5%	4.1%
SR50 Growth (77-90) Index	-1.9%	4.9%	7.2%	6.7%	7.6%	7.5%

Source: SuperRatings estimates

October also saw pension returns fall, with the median balanced pension option returning an estimated -1.8%. The median growth option is also estimated to see a decline -2.2% for the month, while the median capital stable pension option is estimated to deliver a -0.9% return.

Pension returns to October 2023

	Monthly	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%	4.8%	6.4%	6.3%	7.1%	7.2%
SR50 Capital Stable (20-40) Index	-0.9%	3.3%	2.6%	3.3%	3.9%	4.4%
SR50 Growth (77-90) Index	-2.2%	5.3%	7.9%	7.5%	8.4%	8.3%

Source: SuperRatings estimates

While data suggests a inflation is moderating, it remains persistently above target and we saw the RBA provide a Melbourne Cup rate rise accordingly. Along with the US Federal Reserve leaving open the possibility of further rate rises to quell their own inflation, the share market rally we have witnessed in November so far may be not be sustainable.

“Despite the uncertain environment of the past quarter, returns remain positive over 1 through to 20 years. Superfunds continue to display strong capabilities in navigating uncertain market environments and members have been experiencing increased levels of ups and downs for some time now” commented Mr Rappell. “Our message to members remains one of focusing on the long term and sticking with their long-term investment strategy. The ups and downs are likely to continue, and members who are thinking about changing their strategy are encouraged to contact their fund, or speak with a trusted adviser, before making any changes.”

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

November 9, 2023/by Kirby Rappell

Lonsec Retirement Perspectives, Media releases

Media release: Super returns continue bumpy ride in September

Funds are estimated to post negative returns for the second month in a row in September, with leading research house SuperRatings estimating the median balanced option will return -1.8% for the month, as investors adjust to the increased likelihood of interest rates remaining higher for longer. Despite these challenges, the median balanced option return for the 3 months to 30 September 2023 is estimated to be a modest -0.4% fall.

“We observed an acceleration of the August performance trend in September as both international and Australian equities weighed on returns, with sticky inflation the key concern for markets” commented Kirby Rappell, Executive Director of SuperRatings.

The median growth option fell by an estimated -2.2%, while lower exposure to shares resulted in the median capital stable option delivering a smaller loss of -1.1% for September.

Accumulation returns to September 2023

	Monthly	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%	9.0%	6.6%	5.3%	6.3%	6.9%
SR50 Capital Stable (20-40) Index	-1.1%	5.1%	2.7%	2.9%	3.5%	4.3%
SR50 Growth (77-90) Index	-2.2%	11.0%	8.2%	6.2%	7.8%	8.0%

Source: SuperRatings estimates

Pension returns also fell in September, with the median balanced pension option falling an estimated -1.8%. The median growth option is estimated to decline -2.3% for the month while the more defensive median capital stable pension option is estimated to deliver a -1.2% return.

Pension returns to September 2023

	Monthly	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%	10.6%	7.3%	5.9%	7.2%	7.6%
SR50 Capital Stable (20-40) Index	-1.2%	5.6%	3.0%	3.2%	3.9%	4.6%
SR50 Growth (77-90) Index	-2.3%	12.1%	8.7%	6.9%	8.5%	8.7%

Source: SuperRatings estimates

The trajectory for interest rates and geopolitical tensions are likely to remain as the dominant drivers for superannuation returns over the coming months. While returns fell over the month, relative to the broader market, funds continue to outperform equities due to the benefits of diversification.

“Super funds continue to display strong capabilities in navigating uncertain market environments and members have been experiencing increased levels of ups and downs for some time now” commented Mr Rappell. “Our message to members remains one of focusing on the long term and sticking with their long-term investment strategy. The ups and downs are likely to continue, and members who are thinking about changing their strategy are encouraged to contact their fund, or speak with a trusted adviser, before making any changes.”

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

October 12, 2023/by Kirby Rappell

Lonsec Retirement Perspectives, Media releases

Media release: Super funds feel modest headwinds during August

After a positive start to the new financial year, super fund returns faced modest headwinds in August with the median balanced option delivering an estimated return of -0.1% according to leading superannuation research house SuperRatings.

The trajectory for inflation remains a key driver for markets with uncertainty around central bank’s rates pathway remaining front of mind. Both Australian and global equities reported small declines over the month with diversification continuing to benefit members in reducing underperformance.

The median growth option fell by an estimated -0.3%, while lower exposure to shares resulted in the median capital stable option delivering a small positive result, with an increase of 0.1% for August.

Accumulation returns to August 2023

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	-0.1%	7.7%	7.1%	5.7%	6.6%	7.2%
SR50 Capital Stable (20-40) Index	0.1%	4.2%	3.0%	3.1%	3.6%	4.5%
SR50 Growth (77-90) Index	-0.3%	9.3%	8.5%	6.6%	8.1%	8.4%

Source: SuperRatings estimates

Pension returns followed a similar trend over the month, with the median balanced pension option falling an estimated -0.1%. The median growth option is estimated to decline -0.2% in August while the more defensive median capital stable pension option is estimated to deliver a 0.1% gain.

Pension returns to August 2023

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	-0.1%	8.7%	7.7%	6.3%	7.5%	7.9%
SR50 Capital Stable (20-40) Index	0.1%	4.7%	3.4%	3.4%	4.1%	4.9%
SR50 Growth (77-90) Index	-0.2%	9.8%	9.1%	7.4%	8.9%	9.2%

Source: SuperRatings estimates

“Market uncertainty persists, and we continue to expect monthly fund returns to bounce around” commented Executive Director of SuperRatings, Kirby Rappell, “However, over the long term, we know funds have a strong record of performing above objectives. The key message for most members is ensuring their settings are right for the long term in order to provide dignity in retirement.”

Monitoring investment performance is a good hygiene factor for members and the results of the latest annual performance test were recently released. The test has had a significant impact on MySuper default products over the past three years with the only MySuper product to fail the test this year already being closed to new members. The test was also expanded to a broader range of products this year and members who are invested in a failing product will soon be receiving a letter from their fund. If you do receive that letter, make sure you review your investment option or speak with a trusted adviser to understand why it failed and if it’s still suitable for you.

“We’ve seen a more subdued return for super funds over August, however the strong returns in July mean performance remains positive overall for the new financial year. We encourage members to focus on the longer term and be prepared to see more ups and downs over the coming months” concluded Mr Rappell.

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

September 12, 2023/by Kirby Rappell

Media releases

Media release: Super fund returns maintain momentum in July

The median balanced option delivered a return of 1.5% in July according to estimates from leading superannuation research house SuperRatings, with funds continuing to build on the momentum in markets seen over the final quarter of FY23.

The impact of inflation continues to drive markets with most Australian and global equities delivering modest returns, while energy and commodities performed well over July. We expect returns will remain bumpy over the short term, despite the Reserve Bank of Australia taking a wait and see approach in both July and August following indications that the tightening cycle is beginning to have a clearer impact on spending and consumption.

The median growth option rose by an estimated 1.8%, while the median capital stable option delivered a small positive result, with an increase of 0.8%.

Accumulation returns to July 2023

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	1.5%	7.2%	7.8%	5.9%	6.7%	7.2%
SR50 Capital Stable (20-40) Index	0.8%	3.6%	3.2%	3.1%	3.7%	4.5%
SR50 Growth (77-90) Index	1.8%	9.2%	9.4%	7.0%	8.3%	8.5%

Source: SuperRatings estimates

Pension returns also increased in July, with the median balanced pension option up an estimated 1.7%. The median growth option is estimated to rise 2.0% for the month while the more defensive median capital stable pension option is estimated to deliver a 0.9% return.

Pension returns to July 2023

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SRP50 Balanced (60-76) Index	1.7%	8.2%	8.5%	6.6%	7.6%	8.0%
SRP50 Capital Stable (20-40) Index	0.9%	3.8%	3.7%	3.5%	4.1%	5.0%
SRP50 Growth (77-90) Index	2.0%	10.1%	10.0%	7.6%	8.8%	9.2%

Source: SuperRatings estimates

Executive Director of SuperRatings, Kirby Rappell commented, “Funds have had a strong finish to FY23 with the median balanced fund returning 9.1% over the year to June and it is pleasing to see funds maintaining that momentum into the first month of FY24.”

With funds in the process of preparing annual statements, it is a great time to think about reviewing your superannuation arrangements. There are some simple rules of thumb to check including the level of fees you are paying, the performance of your investments and how much insurance cover you have.

If you are unsure of what settings are suitable for you, reach out to your fund to see what services they might offer to help you make these decisions or talk to a trusted adviser and remember to check if there is any cost associated with accessing these services before you agree to them.

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

August 11, 2023/by Kirby Rappell

Media releases

Media Release: Shares drive 2023 return as super delivers through uncertain times

With superannuation funds finalising their returns to 30 June 2023, it is clear that super has delivered a competitive outcome during uncertain times. This is particularly pleasing following the -3.4% loss reported a year ago. Share markets rebounded strongly over the year with international shares driving fund returns, albeit well supported by Australian shares.

All Balanced funds, those with between 60% to 76% of their portfolio invested in growth assets, are expected to deliver positive returns to members, while the top 10 funds provided members with returns of over 9.5% for the financial year and members in several of the best performers will be receiving double digit returns. ESSSuper was the top performing Balanced fund for the year ending June 2023 returning 13.3% for its Balanced Growth option, which was renamed from Basic Growth on the 1st of July 2023. This was followed by Vision Super’s Balanced Growth option and Brighter Super’s Balanced Option with returns of 11.0% and 10.6% respectively.

Daniel Selioutine, ESSSuper’s Group Executive, Investments commented: “Performance over the last 12 months has been a welcome result for our members and follows a multi-year program of reorienting the portfolio towards areas of competitive advantage. Our shorter term performance is explained by our positioning in equities and bonds, however our dedicated investment team remains firmly focussed on delivering longer-term investment outcomes to members.”

Top 10 Balanced Options over 12 months

As at 30 June 2023

Rank	Option Name	1 Year %	10 Year % pa
1	ESSSuper Accum – Basic Growth	13.3	–
2	Vision SS – Balanced Growth	11.0	8.1
3	Brighter Super Accum – Balanced	10.6	7.3
4	UniSuper Accum (1) – Balanced	10.3	8.4
5	Equip MyFuture – Balanced Growth	10.1	7.8
6	Australian Retirement Trust – Super Savings – Balanced	10.0	8.4
7	IOOF Employer Super Core – IOOF MultiSeries 70	9.8	7.2
8	Aware Super Future Saver – Balanced	9.7	7.9
9	Mercer Super Trust – Mercer Select Growth	9.6	–
10	HESTA – Balanced Growth	9.6	8.0
	SR50 Balanced (60-76) Index	9.0	7.5

Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. *Based on primary Balanced option by FUM within SR50 Balanced Index.

The table above displays the performance of the top performing balanced funds for the year to 30 June 2023, as well as showing 10-year returns which is an important consideration given the long-term nature of superannuation investments.

The second half of the financial year provided the majority of gains for funds, led by a rally in international shares. A key theme for returns in 2023 was that funds with higher exposure to shares generally outperformed for the year, while those with greater exposure to unlisted property and alternatives reported more subdued outcomes. As a result, members who were invested in index funds generally did quite well, given the strong focus on listed shares in these options.

Top 5 Passive Balanced Options over 12 months

As at 30 June 2023

Rank	Option Name	1 Year %	10 Year % pa
1	HESTA – Indexed Balanced Growth	12.5	–
2	Rest – Balanced Indexed	12.4	–
3	Hostplus – Indexed Balanced	12.3	7.9
4	Brighter Super – Indexed Balanced	11.7	–
5	AustralianSuper – Indexed Diversified	11.6	7.2

Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. *Based on passive options with SAA of 60-76% growth assets tracked by SuperRatings.

The top performing indexed fund was HESTA’s Indexed Balanced Growth option with a return of 12.5% for the year to June. While this sits slightly lower than the top performing balanced option, over the past 12 months, balanced index options have tended to outperform their more actively managed equivalents.

Top 5 Sustainable Balanced Options over 12 months

As at 30 June 2023

Rank	Option Name	1 Year %	10 Year % pa
1	Raiz Super – Emerald (SRI)	13.3	–
2	Super SA Triple S – Socially Responsible*	12.1	7.3
3	UniSuper Accum (1) – Sustainable Balanced	11.0	8.2
4	Aware Super Future Saver – Balanced Socially Conscious	10.9	8.4
5	Future Super – Balanced Index	10.5	–

*This option is tax exempt for members
Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. *Based on SR Sustainable Balanced Survey for options with SAA of 60-76% growth assets tracked by SuperRatings.

Investments with a sustainable focus have also outperformed over the year with Raiz Super’s Emerald investment option matching the top performing balanced option with a return of 13.3%.

“As we see funds offering members a range of investment options, it is worthwhile to note we are seeing different options perform well in different market conditions” commented Executive Director of SuperRatings, Kirby Rappell. “However, members should remember that superannuation is a long-term investment, and most of these options are still relatively new in superannuation terms. While short term trends may be topical, longer term trends are our primary focus as we want to see which funds have performed well over the long term and their alignment with their member’s outcomes.”

Hostplus’ Balanced option remained the highest performing balanced option over 10 years returning of 8.9% p.a. with the top 10 performers over ten years to June listed in the table below:

Top 10 Balanced Options over 10 years

As at 30 June 2023

Rank	Option Name	1 Year %	10 Year % pa
1	Hostplus – Balanced	8.0	8.9
2	AustralianSuper – Balanced	8.2	8.6
3	Australian Retirement Trust – Super Savings – Balanced	10.0	8.4
4	UniSuper – Balanced	10.3	8.4
5	Cbus – Growth (MySuper)	9.0	8.3
6	Vision Super – Balanced Growth	11.0	8.1
7	CareSuper – Balanced	9.1	8.0
8	HESTA – Balanced Growth	9.6	8.0
9	Aware Super Future Saver – Balanced	9.7	7.9
10	Spirit Super – Balanced (MySuper)	9.2	7.8
	SR50 Balanced (60-76) Index	9.0	7.5

Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. *Based on SR50 Balanced Index options with SAA of 60-76% growth assets tracked by SuperRatings.

“We observed funds reviewing and writing down their unlisted asset valuations at the end of the financial year, contributing to the moderately weaker annual performance of funds with significant exposure to these assets in FY23; however, over the long term, they have added value to member outcomes, with many of the top performing options over 10 years having exposure to alternative assets” continued Mr Rappell. “Superannuation continues to deliver for members over the long term with annual returns of 7.1% since compulsory superannuation began in 1992.”

Expect more ups and downs in FY24

While funds benefited from strong performance in shares over the second half of the year, FY23 continued the trend of increased fluctuation in member account balances with 5 out of the 12 months in the year having negative performance. Members who are still some distance from retiring can afford to ride-out these ups and downs as these will be a distant memory by the time they retire, but for members nearing, or in, retirement minimising these fluctuations can be a key factor in their retirement planning.

“Since the onset of the COVID-19 pandemic, managing volatility has really come back into focus for funds after almost a decade of steady gains. The sharp rise in inflation and global uncertainty has been a constant over the past couple of years and we expect this to persist.” said Mr Rappell.

The table below shows the top 10 funds ranked according to their volatility-adjusted return, which measures how much members are being rewarded for taking on the ups and downs in their balances.

CareSuper, which was the winner of the SuperRatings Smooth Ride award in 2022, for being able to manage the ups and downs, sits at the top of the table with its Balanced option return of 7.5% p.a. over the past 7 years. This was closely followed by Australian Retirement Trust’s Super Savings Balanced option with a return of 8.3% pa.

Top 10 Funds Based on Volatility-Adjusted Performance with 7 Year Return Shown

As at 30 June 2023

Rank	Option Name	Rolling 7 Year %
1	CareSuper – Balanced	7.5
2	Australian Retirement Trust – Super Savings – Balanced	8.3
3	Hostplus – Balanced	8.6
4	Qantas Super – Growth	7.8
5	Aware Super Future Saver – Balanced	7.7
6	Cbus – Growth (MySuper)	7.6
7	AustralianSuper – Balanced	8.1
8	HESTA – Balanced Growth	7.7
9	Vision Super – Balanced Growth	8.0
10	IOOF Employer Super – MultiMix Balanced Growth Trust	7.2

Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. *Based on SR50 Balanced Index with SAA of 60-76% growth assets tracked by SuperRatings.

Suzanne Branton, Chief Investment Officer at CareSuper commented, “Through its history CareSuper’s investment approach has delivered high long term returns with lower risk. High returns are important, but we also care for our members by protecting their savings when markets are volatile and uncertain. We are pleased to consistently rank amongst the highest risk-adjusted returns, that’s our goal. Many think members don’t recognise risk-adjusted returns, but we know members understand when the environment becomes difficult – they can see the cost of living and mortgage rates are much higher. Given the complex outlook, we expect our dual purpose will be valued by members in times to come.”

As another financial year ends and funds begin to prepare annual statements, it’s a great time to review your superannuation settings. Regularly engaging with your superannuation will be time well spent when you see the potential impact on your retirement balance. Common things to check include if the investment option you’re in is suitable for your current stage of life and risk appetite, your current insurance cover and importantly, that all your contact details are up to date. Funds often offer simple risk profiling tools on their website to help with investment decisions and checking on your details has never been easier with most funds offering multiple channels to do so, such as by phone, online portals and even dedicated mobile apps.

If you are thinking of making a change, there are also multiple services that can help. SuperRatings has over 450 product ratings available on our website and funds themselves may offer access to advice services on a range of topics including investments, insurance, consolidation and retirement planning either directly or through associated adviser networks. Contact your fund to see what advice services are available but note there may be a cost for doing so. Make sure you check how much advice will cost and how you can pay for it before going ahead to ensure it’s right for you. Alternatively, you may wish to discuss your super with a trusted financial adviser to help understand whether your current super settings are appropriate for your personal situation. The Government also provides a comparison tool via the ATO website and information on how to select a financial adviser through the MoneySmart website.

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

July 17, 2023/by Kirby Rappell