How did super funds perform in Q3?
The median balanced superannuation fund is estimated to have seen negative returns in the third quarter of 2023, according to SuperRatings.
Over the quarter to 30 September, the research house said the median balanced fund is estimated to have lost 0.4 per cent. These are funds which sit in SuperRatings SR50 Balanced (60-76) index.
While July saw returns of 1.5 per cent, both August and September reported negative performance of 0.1 per cent and 1.8 per cent respectively.
Kirby Rappell, executive director of SuperRatings, said: “We observed an acceleration of the August performance trend in September as both international and Australian equities weighed on returns, with sticky inflation the key concern for markets.”
During FY2022-23, the median balanced super fund returned 8.5 per cent over the 12 months.
The median growth option lost an estimated 2.2 per cent during September, while lower exposure to shares resulted in the median capital stable option losing an estimated 1.1 per cent for September.
While there was negative performance during August and September, Rappell said super funds had still beaten equities thanks to the benefits of diversification.
“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.
“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.”
AUTHOR
Laura Dew
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Maybe that last sentence should have been "... a trusted and licensed adviser". :P