Monthly investment update, February 2024

Information for members with an Optimiser account

16 February 2024

Brighter Super’s MySuper option, the default option for Accumulation accounts, returned 10.40% in the 12 months ended 31 December 2023¹. This was the highest MySuper return for all Queensland-based industry funds for this period, according to the SuperRatings SR50 MySuper Index². 

For Pension accounts, the Multi-Manager Growth option was the top-performing option in SuperRatings’ SRP50 Balanced Index for the 12 months ended 31 December 2023 ². 

The tables below show the performance of our diversified investment options for Accumulation and Pension accounts for periods ended 31 December 2023. 

How are your investments performing? 

You can see how the investments for your super are performing by using the interactive performance graph on our website. 

Performance graphs can be displayed for all investment options and account types over a chosen period. Notes about the calculations are provided on the web page. 

See how your investments are performing 

Commentary on investment markets 

Global equity market performance was strong in December 2023. This was fuelled by expectations for major central banks to implement interest rate cuts during 2024, and evidence of inflation easing. The MSCI World Index, which tracks stock markets across 23 developed countries, recorded an increase of 4.0% for the month. 

The US equity market exhibited robust performance in December 2023, highlighted by the S&P 500 surging by 4.5%. All sectors delivered positive returns. The US economy demonstrated resilience in solid monthly consumer spending and a steady unemployment rate of 3.7%. Initial jobless claims also remained low. 

Both UK and the Eurozone equity markets also benefitted from softer inflation figures, which led to market expectations for potential rate cuts. However, economic data for these regions has not displayed the same level of resilience as the US. Business activity indicators in these regions showed signs of contraction, and Gross Domestic Product (GDP) figures contracted marginally in the September 2023 quarter.  

The MSCI Emerging Markets Index, which tracks stock markets across 24 emerging market countries, returned a more modest 1.0% increase over the month. Most regions delivered positive return except for China, where equity markets reflected investor concerns regarding the sufficiency of the Chinese government’s stimulus measures.  

The equity market in Australia experienced a robust rally, posting a significant gain of 7.2%. All sectors delivered positive results. Utilities had the lowest monthly return at 2.5%. The Australian economy expanded modestly, recording a 2.1% year-on-year growth rate to September 2023.  

Australian household spending has slowed, and unemployment remains low. Despite increased migration contributing to overall economic activity, a growing population combined with slowing growth resulted in lower GDP per capita. The Reserve Bank of Australia (RBA) maintained its policy rate at 4.35% at its final meeting of 2023, as it continues to target an inflation rate of 2-3%. 

Bond yields declined sharply throughout the month as markets adjusted to expectations of lower inflation and interest rates. In the US, the 10-year government bond yield fell by 48 basis points to 3.88%, while the Australian yield dropped by 45 basis points to 3.96%. 

The Australian Dollar (AUD) strengthened against other major currencies in December 2023, rising by 2.9% against the US Dollar (USD) and 2.2% against the Pound Sterling (GBP). 

Financial advice 

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 financial advice or call us on 1800 444 396.