Super performance sees recovery ahead of Christmas

Superannuation funds have bounced back after three months of losses, with November seeing strong returns into the holiday period. 

Research house SuperRatings observed median balanced options will deliver returns of 3.1 per cent for November.

This contrasts declines of -1.6 per cent during October, which marked the third month in a row of negative performance.

The median growth option also experienced strong growth with returns of 3.5 per cent in November, while the median capital stable option saw modest returns of 2 per cent due to lower share exposure. 

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“Despite the uncertainties around inflation, markets, and rates, we have seen funds recording strong returns into Christmas.” said Kirby Rappell, SuperRatings executive director.

Positive performance was also evident in pension returns. The median balanced pension option returned an estimated 3.4 per cent and the median growth option brought in gains of 3.9 per cent.

Meanwhile, the median capital stable pension option saw returns of 2.3 per cent.

“The estimated gains in November are set to recover most of the losses over the last few months, setting up a modest, but positive, scene for most members as they approach the halfway point of the financial year,” the research house described.

“SuperRatings estimates the median fund will provide members with a 1 per cent gain for the first five months of the financial year.”

According to Rappell, inflation will be a key driver of markets throughout 2024 alongside softening consumer demand. 

“December has been more mixed for shares so far, however there is still potential for a Santa rally in the second half of the month, and we encourage members to remain focused on their long-term outcomes,” he added.

Members can expect reasonable positive returns for the end of the calendar year, SuperRatings shared, though this will be dependent on December’s performance.

Funds are tracking to deliver 6.8 per cent returns after 11 months of the calendar year for the median balanced option, despite previous modest returns.