Super returns rebound in October

Mike Taylor

Managing Editor/Publisher, Financial Newswire

11 November 2022

The roller-coaster ride of Australian superannuation funds continues with the latest data from SuperRatings pointing to investment returns heading back up in October.

According to SuperRatings, the median balanced option generated a return of 3% in October, driven in large measure by improving sentiment around interest rates and equities returns both in Australia and the US.

SuperRatings said the median growth option increased by an estimated 3.7% in October, while the median capital stable option which has less exposure to share markets delivered a smaller positive result with a rise of 1.3%.

It said pension returns also rose in October, with the median balanced pension option up an estimated 3.3% with the median estimated growth option up 4.1% and the median capital stable option up 1.5%.

Commenting on the data, SuperRatings executive director, Kirby Rappell said the 3% October return was pleasing b+ut reinforced the importance of setting and sticking with long-term strategy.

He said members who mighty have panicked and switched when returns were down last month may have missed out on the recovery.

“It is going to continue to be a bumpy road and focusing on these short-term indicators isn’t telling you the whole story, so it’s best to consider your long-term objectives and the level of volatility you’re able to tolerate,” he said.

“This will best support setting a long-term strategy that can cope with the noise we are seeing in markets. As we approach the end of the calendar year, it is the perfect time to review your superannuation, talk to your fund or an adviser you trust and run a health check on your current settings to ensure your super is fit for the new year.”