Australia’s superannuation funds continued their strong performance in October, with the median balanced option delivering a 1.3 per cent return for the month, based on estimates from SuperRatings. This marks the seventh consecutive month of positive performance and only the sixth time in 25 years that the first four months of a financial year have all shown gains.
According to Kirby Rappell, Executive Director of SuperRatings, the continued market optimism drove good returns in October. “While international shares remain the key driver, Australian shares had a better month, and outcomes were positive across key asset classes.” SuperRatings is a research firm that provides insights and analysis on the superannuation and investment markets. The firm offers ratings and comparisons of different superannuation funds and investment options.
The median growth option saw a 1.4 per cent increase, while the median capital stable option gained 0.8 per cent. Year-to-date figures show the balanced index is up 4.9 per cent, and the growth index has increased by 5.6 per cent. Pension funds also reported strong results, with the median balanced pension option rising by 1.4 per cent and the growth pension option increasing by 1.5 per cent.
Rappell noted the strong start to the financial year, despite ongoing global uncertainties. He cautioned that “geopolitical tensions continue to create the potential for market shocks meaning we may see some more bumps in the road over the coming months. However, returns remain well above objectives over the long term.” SuperRatings advises members to maintain a long-term perspective and seek professional advice before making changes to their investment strategies.
