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Super returns maintain strong momentum in July
Funds are continuing to build on an upward trend in markets following a strong finish to the previous financial year, delivering a median balanced return of 1.5 per cent in July, according to SuperRatings.
Meanwhile, the median growth option rose by around 1.8 per cent and the median capital stable option saw an increase of 0.8 per cent.
“Funds have had a strong finish to FY23 with the median balanced fund returning 9.1 per cent over the year to June and it is pleasing to see funds maintaining that momentum into the first month of FY24,” said Kirby Rappell, executive director at SuperRatings.
The median balanced pension option was up around 1.7 per cent.
Similarly, the median growth pension option is estimated to rise 2.0 per cent for the month while the more defensive median capital stable pension option is estimated to deliver a 0.9 per cent return.
According to the research house, energy and commodities performed well in July while most global and local equities delivered modest returns.
Still, the impact of inflation continues to drive markets and returns could be bumpy in the short term, while the Reserve Bank of Australia is taking a ‘wait and see’ approach to its tightening cycle.
Rates have been held at 4.1 per cent for the past two RBA meetings but at least one more rate hike is expected before interest rates reach their peak.
The previous month, the median balanced option returned 1.2 per cent over the month of June.
Looking at the top 10 performers at the end of financial year, SuperRatings found ESSSuper beat out mega funds like Australian Retirement Trust and Aware Super to deliver the top Balanced option performance to deliver a 13.3 per cent return in the last 12 months.
This was followed by Vision Super (11 per cent) and Brighter Super (10.6 per cent).
The top five performing balanced options were rounded up by UniSuper (10.3 per cent) and Equip Super (10.1 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.
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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(%)
