POWERED BY MOMENTUM MEDIA
Geopolitical uncertainty dampens September super returns
The median balanced superannuation fund fell 1% over September, as investors felt the impact of ongoing geopolitical uncertainty, mixed vaccination roll outs and heightened concerns around the economic outlook in China, according to SuperRatings.
It was the first modest dip in 12 months with the typical growth option returning an estimated fall of 1.3% for the month and the median capital stable option declining by 0.5%.
SuperRatings executive director, Kirby Rappell, said: “While we have seen a pullback in returns in the month of September, funds have downside protection strategies in place and most members sit in diversified options such as balanced and growth options, with exposure to multiple asset classes which can lessen the bumpiness of the ride from shifting share markets.
“Calendar year returns to the end of September are sitting around 10% for members in the median balanced option reflecting that despite any emerging volatility, super funds seem on track for a strong calendar year return for 2021 and performance that is well in excess of their long-term objectives.”
Accumulation returns to September 2021
|
|
Monthly |
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% |
17.9% |
7.7% |
8.4% |
7.9% |
9.1% |
|
SR50 Capital Stable (20-40) Index |
-0.5% |
7.6% |
4.4% |
4.6% |
4.8% |
5.5% |
|
SR50 Growth (77-90) Index |
-1.3% |
22.0% |
8.9% |
9.8% |
9.1% |
10.3% |
Source: SuperRatings estimates
Pension returns also fell in September, with the median balanced pension option dropping 1.2% while the median pension growth option and the median capital stable option falling by 1.5% and 0.7% respectively. However, annual returns remain strong rising 19.4% over the year.
Pension returns to September 2021
|
|
Monthly |
1 yr |
3 yrs (p.a.) |
5 yrs (p.a.) |
7 yrs (p.a.) |
10 yrs (p.a.) |
|
SRP50 Balanced (60-76) Index |
-1.2% |
19.4% |
8.4% |
9.2% |
8.7% |
10.1% |
|
SRP50 Capital Stable (20-40) Index |
-0.7% |
8.3% |
5.0% |
5.2% |
5.2% |
6.2% |
|
SRP50 Growth (77-90) Index |
-1.5% |
24.0% |
9.8% |
10.6% |
9.9% |
11.5% |
Source: SuperRatings estimates
Recommended for you
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
With private asset valuations emerging as a key concern for both regulators and the broader market, Apollo Global Management has called on the corporate regulator to issue clear principles on valuation practices, including guidance on the disclosures it expects from market participants.
Institutional asset owners are largely rethinking their exposure to the US, with private markets increasingly being viewed as a strategic investment allocation, new research has shown.
Australia’s corporate regulator has been told it must quickly modernise its oversight of private markets, after being caught off guard by the complexity, size, and opacity of the asset class now dominating institutional portfolios.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
