POWERED BY MOMENTUM MEDIA
Super funds on track to deliver ‘high single digit returns’ for FY24
Following April’s market upset that dampened hopes of double-digit returns for this financial year, research house SuperRatings has offered a silver lining, suggesting funds remain on track to still deliver high single-digit returns.
While not enough to fully regain the 1.6 per cent fall in April, SuperRatings noted markets improved over the month as equities stabilised.
The median balanced option returned 1 per cent over May, while the median growth option and median capital stable options grew 1.1 per cent and 0.6 per cent, respectively.
Meanwhile, the median balanced pension option increased by an estimated 1.1 per cent, the median capital stable pension option rose by some 0.7 per cent, and the median growth pension option rose 1.2 per cent for the same period.
According to SuperRatings executive director Kirby Rappell, 2024 is looking to be a competitive year for fund performance, despite the pullback in April that saw funds report their first negative monthly return since October 2023.
The strong six-month momentum had previously signalled a potentially “decent chance” of strong returns for the financial year 2024.
“We encourage members to block out the current market noise and focus on long-term strategy as the ups and downs are likely to continue for the foreseeable future,” Rappell said.
“Funds are on track to deliver high single digit returns for the financial year, with more growth focused options potentially reaching double digits if we see current momentum carry through June.”
Rappell said members should take comfort from a second consecutive year of positive returns, following a “seesaw of returns” over the past few years.
Presently, the median balanced option stands at some 8.1 per cent for the financial year to date while the median balanced pension option stands at 9.1 per cent.
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
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
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
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
