During November, the performance exceeding expectations was fueled by strong international equity gains, notably within the US stock market following significant political events. This economic activity has laid a solid foundation for anticipated annual returns.
Current projections indicate that for the eleven-month period concluding in November, the calendar year will possibly witness a remarkable 11.4% return. This demonstrates the impact and strategic allocation of superannuation funds performing positively in the current financial environment.
Kirby Rappell, SuperRatings' executive director, pinpointed the influence of equity investments on last month's returns. "Members invested in options with higher exposure to shares benefited from the strength of the market," he affirmed, underlining the profit driven by these asset classes.
As the year progresses, the superannuation scale is also evolving. With accumulative balances surpassing $4 trillion as of September, 2024 has been advantageously fruitful for super fund holders. Impressively, April remains the only month where funds under the median Balanced option lagged, showing a unique pattern in annual returns.
"The estimated monthly returns push the calendar year return into double digits, with the median balanced accumulation product estimated to return 11.4% for the first 11 months of 2024," Rappell commented further, presenting detailed insights into these findings originally reported by SuperRatings.
Furthermore, for pension members relying on superannuation for retirement income, the scenario looks even brighter. An estimative 12.8% return is expected from the median balanced pension product over the same period, marking a promising year-end.
This prosperous uptick in superannuation, supported by notable equity performance, foreshadows a rewarding period for both accumulators and pensioners alike, validating investment strategies aimed at maximizing market opportunities.
