Balanced superannuation funds furthered the September quarter’s positive momentum, posting strong results in the last month.
September saw a 1.3 per cent spike in the average median balanced option, while the first quarter of the financial year recorded a median return of 4.8 per cent - the second highest on record in the last three years, according to Super Ratings.
Australian equities were responsible for much of the positive returns, with the median superannuation Australian Shares option offering 2.5 per cent, next to the 2.2 per cent on the S&P/ASX 200 Accumulation Index.
International shares also did well, bringing in 1 per cent over the month of September.
Other asset classes, meanwhile, showed similar promise, with property options gaining 1.2 per cent and diversified fixed interest and cash options growing slightly at 0.5 and 0.2 per cent respectively.
Rest Superannuation has topped the list of balanced funds for the last five years, with a median 7.6 per cent growth, followed by the Commonwealth Bank Group and Telstra Super, each on 7.4 per cent.
The Reserve Bank of Australia (RBA) has warned that significant liquidity pressures could arise in the superannuation sector if multiple risks materialise at once, potentially amplifying shocks in the financial system.
Governor Michele Bullock took a more hawkish stance on Tuesday, raising concerns over Donald Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.