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 growth 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.

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“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.”