Markets saw an improvement over May following April losses as equities stabilised. While not enough to fully regain the -1.6% fall in April, leading superannuation research house SuperRatings estimates that the median balanced option returned 1.0% to members over May.
“As we approach the end of the financial year, funds will be seeking to consolidate the strong returns over the past 11 months” commented Kirby Rappell, Executive Director of SuperRatings. “Despite the pull back in April, 2024 is looking to be a competitive year for fund performance.”
The median growth option grew by an estimated 1.1% for the month, while the median capital stable option, rose by a more modest 0.6%.
Accumulation returns to 31 May 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 | 1.0% | 8.1% | 9.5% | 5.2% | 6.6% | 6.6% | 7.0% |
| SR50 Capital Stable (20-40) Index | 0.6% | 5.1% | 5.4% | 2.7% | 3.4% | 3.8% | 4.3% |
| SR50 Growth (77-90) Index | 1.1% | 9.6% | 11.5% | 6.1% | 8.0% | 7.9% | 8.2% |
Source: SuperRatings estimates
Pension returns followed a similar pattern, with the median balanced pension option increasing by an estimated 1.1%. The median capital stable pension option is estimated to rise 0.7% over the month while the median growth pension option is estimated to rise 1.2% for the same period.
Pension returns to 31 May 2024
| Monthly | FYTD | 1 yr | 3 yrs (p.a.) |
5 yrs (p.a.) |
7 yrs (p.a.) |
10 yrs (p.a.) |
|
| SRP50 Balanced (60-76) Index | 1.1% | 9.1% | 10.5% | 5.7% | 7.3% | 7.4% | 7.8% |
| SRP50 Capital Stable (20-40) Index | 0.7% | 5.5% | 5.9% | 3.0% | 3.8% | 4.2% | 4.9% |
| SRP50 Growth (77-90) Index | 1.2% | 10.8% | 13.0% | 6.6% | 8.8% | 8.7% | 9.0% |
Source: SuperRatings estimates
Uncertainty remains high here and abroad around economic resilience and interest rates. However, to date, the resilience of super fund returns should be a source of some comfort for super fund members. 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. “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” continued Mr Rappell. “Most members should take comfort from funds achieving a second consecutive year of positive returns after the seesaw of returns over the past few years, as it further reinforces funds’ ability to navigate challenging investment markets”.
Release ends
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For more information contact:
Kirby Rappell
Executive Director
Tel: 1300 826 395
Mob: +61 408 250 725
Kirby.Rappell@superratings.com.au
