SuperRatings said Australian superannuation fund’s “large weighting to Australian shares” was the biggest driver of the fall for super funds, with the “median Australian shares option falling 4.3 per cent” in September.
“In stark contrast, international share options helped improve the median fund’s returns, with a 2.2 per cent rise,” a statement from SuperRatings said.
“This was primarily driven by a depreciating Australian dollar, which fell by 6.4 per cent against the US dollar during the month,” the statement said.
“Returns across nearly [every] asset class were negative in September. Property options finished the month down 1.7 per cent, while diversified fixed interest was flat and cash options returned 0.2 per cent,” SuperRatings said.
SuperRatings also pointed out October looks to be a “reasonable month for superannuation funds” with gains experienced across the Australian market and only slight losses on international equities so far.
“With the Australian economy continuing to transition from growth driven by mining investment to one driven by the housing market and consumption, the outlook remains somewhat subdued,” SuperRatings said.
“However, unlike September, the Australian dollar has risen slightly in October, which means that it is not expected to provide the same buffer for international equity exposures, as the falling currency makes assets denominated in foreign currencies more valuable in domestic dollar terms,” it said.
“Overall, SuperRatings estimates that the median fund has so far experienced a 0.3 per cent increase for the month of October,” the statement said.
