Monthly investment update and commentary

Information for members with an Optimiser account

17 April 2024

The global economy continues to show resilience against high inflation, with steady growth in the major economies. Share markets made encouraging gains in February 2024 with the MSCI World Index rising 4.7%, and many of our members’ superannuation will have benefited from rising stock prices.

Our investment options for Optimiser accounts continue to deliver strong returns. According to the SuperRatings Fund Crediting Rate Survey February 2024, returns for our ready-made Multi-Manager options were in the top quartile for their respective categories for 1- and 5-year periods (Accumulation and Pension accounts)¹.

Our Multi-Manager High Growth Fund and Multi-Manager Growth Fund were both ranked by SuperRatings as the highest performing options in their categories for the 5-year period ended 29 February 2024 (Accumulation and Pension accounts).

The table below shows returns for our Ready-made investment options over the 1- and 5-year periods ended 29 February 2024².

Commentary on investment markets in February 2024

Global share markets delivered robust returns in February 2024 with the MSCI World Index rising 4.7%, and Emerging Markets producing an even stronger 6.4% jump. One of the contributing factors is an improved outlook for company earnings growth, which is driving market confidence.

In the US, share markets experienced stock price rises in February 2024, with the S&P 500 recording a 5.2% gain. This rise was universal across all 11 sectors of the S&P 500, driven by robust corporate earnings, particularly from leading entities within the Consumer Discretionary and Industrials sectors. Notably, Nvidia (the technology multinational) recorded a staggering 28.6% monthly gain, accounting for 20% of the S&P 500's total return in February 2024.

Eurozone shares also experienced gains, buoyed by improvements in Communication Services, Financials, Industrials, and Consumer Staples. The MSCI AC Europe Index (unhedged) returned 3.2% for the month. Inflation in the Eurozone showed signs of easing, though the European Central Bank continues to maintain a measured approach towards the timing of expected interest rate cuts.

In the UK, share market returns were largely flat for the month. The economy slipped into a recession in the second half of 2023 (defined as two successive quarters of negative growth), due to weak consumer spending and the impact of heightened inflation and interest rates.

Emerging Market shares saw an uplift, fuelled by renewed hopes of China’s stimulus measures. Returns were particularly strong in Korea and Taiwan. These markets benefited, in part, from policy reforms and ongoing enthusiasm for Artificial Intelligence technologies.

The Australian share market experienced a modest 1.0% return, although the IT sector did post an impressive 19.7% increase. The Reserve Bank of Australia held rates steady in February 2024, citing that recent inflation figures have shown consistency but remain high.

In Fixed Income markets, the 10-year Australian bond yield was up by 0.13% to 4.14%, and the US 10-year bond yield increased by 0.29%, reaching 4.24%.

In currency markets, the Australian Dollar (AUD) depreciated against several major currencies in February 2024. It fell by 1.5% against the US Dollar, 0.8% against the Pound Sterling, 1.1% against the Euro, but gained 0.9% against the Japanese Yen.

Our team is here to help

For most people, superannuation is a long-term investment. We urge our members to stay calm during short-term market fluctuations and stay focused on the long term.

If you are considering a change to how your super is invested, talking to a financial adviser can often be helpful.

If you already have a financial adviser, they can help you make informed decisions about your Brighter Super account. If you do not have a financial adviser, Brighter Super’s team of in-house financial advisers are here to help you. Find out more about our financial advice service.

We also offer our members Super Health Check appointments over the phone or video call, at no additional cost. We can discuss different ways to grow your super, and check that your super is on the right track for a comfortable life after work.

Call us on 1800 444 396 to discuss which type of advice would suit you best.