POWERED BY MOMENTUM MEDIA
International shares turn October fund slump around
Fund returns bounced back in November following a subdued October, with SuperRatings reporting 2.4 per cent return for the median balanced option.
After only reporting a modest 0.2 per cent return for the median balanced option in October, the research house said that November saw gains led by the strong performance of international shares, particularly in the US, following the outcome of the US presidential election.
“Share exposure continued to drive super returns in November. Members invested in options with higher exposure to shares benefited from the strength of the market,” SuperRatings executive director Kirby Rappell explained.
According to Rappell, 2024 has been a stronger year for members than anticipated.
“Total superannuation balances have now topped $4 trillion as at the end of September and so far, April is the only month where funds haven’t provided a positive return to members invested in the median balanced option,” he said.
The median growth option grew by an estimated 2.8 per cent in November, while the median capital stable option, with limited exposure to international shares, grew a more modest 1.4 per cent.
Moreover, pension returns saw a similar result, with the median balanced pension option increasing by an estimated 2.7 per cent.
The median capital stable pension option, meanwhile, was estimated to rise 1.5 per cent over the month, while the median growth pension option rose by some 3.1 per cent.
Rappell highlighted that November’s gains pushed the calendar year return into double digits, with the median balanced accumulation product estimated to return 11.4 per cent for the first 11 months of 2024.
“For pension members, the median balanced pension product is estimated to return 12.8 per cent for the 11 months to 30 November 2024,” he continued.
As members near the end of the year, Rappell said they will be pleased to see their balances continuing to grow.
“Funds have delivered an estimated 6.7 per cent annual return over the past 24 calendar years. While there are areas of clear improvement remaining for super funds, it remains reassuring that returns have remained competitive.”
AUTHOR
Jessica Penny
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(%)
