Super funds poised to deliver ‘high single-digit returns’ for FY23–24

InvestorDaily

Following April’s market upset that dampened hopes of double-digit returns for this financial year, research house SuperRatings has offered a silver lining, suggesting funds remain on track to still deliver high single-digit returns. While not enough to fully regain the 1.6 per cent fall in April, SuperRatings noted markets improved over the month as equities stabilised. The median balanced option returned 1 per cent over May, while the median growth option and median capital stable options grew 1.1 per cent and 0.6 per cent, respectively.

Meanwhile, the median balanced pension option increased by an estimated 1.1 per cent, the median capital stable pension option rose by some 0.7 per cent, and the median growth pension option rose 1.2 per cent for the same period. According to SuperRatings executive director Kirby Rappell, 2024 is looking to be a competitive year for fund performance, despite the pullback in April that saw funds report their first negative monthly return since October 2023. The strong six-month momentum had previously signalled a potentially “decent chance” of strong returns for the financial year 2024.

The rest of this article can be found at investordaily.com.au.