Super funds decline 1.6% in October, continuing a three-month slide

Cartoon man exerting effort to push up a large red arrow pointing downward, symbolising an attempt to reverse a downward trend.

The average balanced super fund option fell by 1.6%, marking the third month in a row that super returns have declined.* However, it’s not all doom and gloom considering returns remain positive over 1 through 20 years.*

Kirby Rappell, Executive Director of SuperRatings, has shed some light on the situation, noting that current market volatility and persistent inflation are dampening what would typically be solid gains from shares.

“We have observed continued uncertainty around global markets and inflation, which has weighed on returns from shares”, Rappell said in a statement.

Super and pension funds' turbulent October

According to SuperRatings data, both super and pension funds are feeling the heat across all risk profiles. Here’s how they've performed:

  • Balanced options. The median balanced super fund took a 1.6% dip, while the median balanced pension fund declined by 1.8%.* 
  • Capital stable options. These more cautious funds have faired slightly better, with just a 0.8% decrease for the median capital stable super fund and a 0.9% drop for the median capital stable pension fund.* 
  • Growth options. Growth funds, the riskiest of the group, were hit the hardest, with a 1.9% drop for the median growth super fund and a 2.2% drop for the median growth pension fund.* 

As this month’s results remind us, sometimes there’s just no avoiding the rough patches. However, it’s not cause for alarm.

Staying steady for the future

Despite the rough patch, SuperRatings suggests staying focused on your long-term financial goals. 

“Super funds continue to display strong capabilities in navigating uncertain market environments and members have been experiencing increased levels of ups and downs for some time now. Our message to members remains one of focusing on the long term and sticking with their long-term investment strategy”, Rappel said in a statement.  

If the recent market dips have you second-guessing your investment strategy, it might be worth having a chat with someone who can give you advice tailored to your situation. 

Otherwise, just hang in there!

* The ASIC warns that past performance is not a reliable indicator of future performance.