Investment update to 30 June 2024

Published 6 August 2024

Brighter Super’s investment options performed well in June 2024. This is the first month reporting on returns for our new single set of investment options, now available to all members.

Examples of returns for the year ended 30 June 2024 include¹:

• For Accumulation accounts: Growth returned 11.91%, Balanced returned 10.57% and MySuper returned 9.07%.
• For Pension accounts: Growth returned 13.44 %, Balanced returned 11.92% and Conservative Balance returned 9.79%.

High SuperRatings rankings

Many of Brighter Super’s options achieved high rankings in SuperRatings’ June 2024 Fund Crediting Rate Survey, which is used to benchmark top-performing options across the Australian superannuation industry².

• Our Growth option was ranked as the highest performing option in its category for 5- and 7-years ended 30 June 2024, for Accumulation and Pension accounts.
• Our Balanced option was ranked as the second-highest performing option in its category for 5-years ended 30 June 2024, and the highest performing option in its category for 7-years ended 30 June 2024, for Accumulation and Pension accounts.
• Brighter Super had nine Accumulation options and eight Pension options in the top quartile of their categories for 5- and 7-years ended 30 June 2024³.

Latest returns

The tables below show returns for all options over 1-, 5- and 7-year periods ended 30 June 2024¹.

To find out more about our year-end results, read the recent article on our double-digit returns. For detailed performance timelines, refer to our latest performance.

Market summary

Global equity markets delivered positive returns in June 2024, with the MSCI World ex-Australia Index rising by 2.3%. In the background, a generally softer tone to growth and inflation data in major economies revived market hopes for interest rate easing. Some central banks in developed economies have started rate-cutting cycles to support growth as inflation pressures ease.

The US equity market maintained its upward momentum, with the S&P 500 registering a 3.6% rise for the month. This rise was again narrowly led by the Technology sector, followed by Energy, Materials and Utilities sectors.

In Europe, the MSCI Europe index performance lagged other regions, falling 2.6% for the month. Markets were unsettled by European Parliamentary elections, resulting in a decisive shift to the right and leading to a snap election in France. European stocks were further pressured by lingering inflation concerns despite the European Central Bank (ECB) cutting its interest rate from 4% to 3.75% to spur economic activity.

Asian markets posted gains of 3.9% in June 2024, with Taiwan leading the region due to its significant technology exposure and Artificial Intelligence-linked sentiment. Indian equities rebounded after surprising election results tempered Prime Minister Modi’s political power. In contrast, Chinese equities fell 1.9% in June 2024 as investor sentiment and consumer spending remained weak despite government stimulus efforts.

The Australian equity market saw modest gains in June 2024, with the ASX 300 rising by 0.9%. The Financials and Consumer Staples sectors led the way, while the Materials sector underperformed. Compared to other major economies, Australia remains an outlier, with recent inflation data showing renewed signs of persistence. This prompted a shift in Reserve Bank of Australia’s bias towards further tightening, and it has maintained the cash rate at 4.35%.

It was a quieter month for bonds. The Australian 10-year government bond yield declined by a small margin to 4.31%, while the US 10-year government yield declined by a similarly small amount 4.37%.

The Australian dollar strengthened over the month against major currencies, appreciating against the Euro (+1.7%), Japanese Yen (+2.8%), U.S. Dollar (+0.4%), and New Zealand Dollar (+1.3%).