Global share growth benefiting Aussie super balances
Australian super funds are benefiting from the global share market rally, with big gains in the US and European markets already being reflected in members’ accounts to get the new financial year off to a promising start.
SuperRatings found that the median balanced option and median grown option grew approximately 1.1 and 1.3 per cent respectively in July. Considering the average monthly return over the last five years has hovered around 0.7 per cent, this was a strong start to the fiscal year.
Global share growth was largely responsible for this, with funds with global exposure having an advantage over those focused on Australian shares as the latter took a battering partially because of the continued effects of the Royal Commission on the financial sector. The SR50 International Shares Index jumped 2.2 per cent in July, compared to a rise of half that from the SR50 Australian Shares Index.
“Super funds have ridden a wave of positive sentiment over the past few months, and this has been reinforced by strong earnings growth, especially in the US and Europe,” SuperRatings chief executive, Kirby Rappell, said.
“Despite the imminent threats to the market rally, from trade wars to Brexit to the emerging economic crisis in Turkey, nothing seems to be putting a dent in confidence.”
AUTHOR
Hannah Wootton
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
