Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Global uncertainty continues to weigh on super performance

SuperRatings/super-funds/performance/

9 November 2023
| By Jasmine Siljic |
image
image image
expand image

Superannuation funds have experienced negative performance for the third month in a row, with October seeing returns of -1.6 per cent for median balanced options. 

According to SuperRatings, the median growth option declined by -1.9 per cent while the median capital stable option saw falls of -0.8 per cent due to lower share exposure. 

Last month, SuperRatings similarly reported negative returns for the third quarter of 2023 to 30 September, with the median balanced fund estimated to have lost 0.4 per cent over the quarter.

On a monthly basis, median balanced funds saw falls of -0.1 per cent in August and 1.8 per cent in September.

During the financial year 2022–23, the median balanced super fund returned 8.5 per cent over the 12 months.

Kirby Rappell, executive director of SuperRatings, explained: “We have observed continued uncertainty around global markets and inflation, which has weighed on returns from shares.”

Pension returns also fell during the month of October. The median balanced pension option saw estimated returns of -1.8 per cent, alongside the median growth option that decreased by -2.2 per cent. 

Moreover, the median capital stable pension option delivered negative returns of -0.9 per cent. 

The executive director noted the persistent impact of high inflation, evident in RBA governor Michele Bullock’s cash rate rise of 25 bps to 4.35 per cent on Melbourne Cup Day (7 November).

“Despite the uncertain environment of the past quarter, returns remain positive over one through to 20 years. Super funds continue to display strong capabilities in navigating uncertain market environments and members have been experiencing increased levels of ups and downs for some time now,” Rappell said.

“Our message to members remains one of focusing on the long term and sticking with their long-term investment strategy. The ups and downs are likely to continue, and members who are thinking about changing their strategy are encouraged to contact their fund, or speak with a trusted adviser, before making any changes.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

3 weeks 2 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

4 weeks 2 days ago

So we are now underwriting criminal scams?...

7 months ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

3 weeks 4 days ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

4 weeks 1 day ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

1 week 3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND