Solid super returns expected despite variable September

Mike Taylor

Managing Editor and Publisher

18 October 2021

Australian superannuation funds appear to be still on track to deliver solid double digit returns to members despite a minor correction in September, according to the latest data from SuperRatings.

The correction was owed to some caution within both domestic and international share markets spooked by a range of factors including geopolitical uncertainty.

However, according to the SuperRatings analysis the typical balance3d option returned -1.0% and this needs to be weighed against solid returns over the year.

The SuperRatings commentary said September saw a modest dip in superannuation returns for the first time in 12 months, as domestic and global share markets were impacted following ongoing geopolitical uncertainty, mixed vaccination roll outs and heightened concerns around the economic outlook in China, with the uncertainty surrounding real estate giant Evergrande being a focal point of this.

“The typical balanced option returned an estimated -1.0% over the month; however, returns remain strong with an estimated 17.9% over the year. The typical growth option returned an estimated -1.3% for the month and the median capital stable option also declined by -0.5% in the month.”

“Pension returns also fell in September. The median balanced pension option returned an estimated -1.2% over the month; however, annual returns remain strong rising 19.4% over the year. The median pension growth option returned an estimated -1.5% and the median capital stable option fell by an estimated -0.7% in the month.”

SuperRatings executive director, Kirby Rapell said calendar year returns to the end of September were sitting around 10% for members in the median balanced option reflecting that despite any emerging volatility, super funds seemed on track for a strong calendar year return for 2021 and performance well in excess of their long-term objectives.