POWERED BY MOMENTUM MEDIA
Super funds deliver small gains in August despite market turbulence
The median balanced option returned 0.4 per cent to members over August, staging a rebound from market turbulence that saw the option dip 1.7 per cent over the first two weeks of the month.
Meanwhile, the median growth option grew by an estimated 0.3 per cent over the month while the median capital stable option, buffered by a lower exposure to shares, rose an estimated 0.5 per cent.
Pension returns also followed a similar pattern, with the median balanced pension option increasing by 0.4 per cent.
The median capital stable pension option and the median growth pension option grew 0.6 per cent and 0.3 per cent, respectively, over the same period.
Kirby Rappell, executive director at Super Ratings, said the first two months of the new financial year were marked by the return of greater volatility.
“Share markets have had a strong impact on fund returns. However, the need to focus on long term outcomes rather than getting caught up in daily movements is as important as ever,” he said.
The new financial year began with strong returns, continuing the momentum built up at the end of 2023–24, Rappell said, although a major market sell-off at the start of August had largely “given back” these results.
Still, the executive reiterated the long-term horizon of super returns, encouraging members “to focus on blocking out short term noise in favour of longer term outcomes”.
He also said that, as super balances are expected to rise and fall, members’ risk appetite and age should be considered in determining if they should take any action around their investment choice.
“For anyone concerned about their super balance and how it will perform most funds have a range of education and tools available on their websites. Some funds will also provide members access to financial advice, however it’s important to check if there is any cost associated with using advice services,” Rappell said.
Importantly, superannuation remains a long-term investment and funds have consistently delivered good long-term outcomes, he said.
“However, for those worried about how their super is doing in these conditions there are a lot of resources available to support members in making the choice most suitable for their situation,” Rappell said.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
