Monthly investment update, March 2024

Information for members with an Optimiser account

8 March 2024

The tables below show the performance of our Ready-made investment options for Accumulation and Pension accounts for periods ended 31 January 2024¹.

Our investment options for Optimiser accounts continue to deliver strong returns. According to the SuperRatings Fund Crediting Rate Survey January 2024, our Multi Manager options listed in the table below were ranked in the industry’s top five best performing options for 1- and 5-year periods ending 31 January 2024² in their respective categories.

The Multi-Manager High Growth Fund and Multi-Manager Growth Fund were both ranked by SuperRatings as first highest performing options in their category for 5 years ended 31 January 2024, for both Accumulation and Pension accounts.

How are your investments performing?

You can see how our investment options 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 for January 2024

In January 2024, performance for global financial markets was mixed, with Global Developed Market equities returning 1.8% (as reflected in the MSCI World Index), while Emerging Markets experienced negative returns of ‑1.6% (unhedged, which excludes currency fluctuations).

Key dynamics impacting markets continued to be focused on geopolitical tensions and the likelihood and timing of anticipated interest rate cuts in major economies.

The US equity market continued its period of strong performance, with the S&P 500 returning 1.7%. Robust economic data and ongoing positive sentiment for Artificial Information (AI) related stocks contributed to this growth.

Real Gross Domestic Product (adjusted for inflation) in the US grew 3.3% in the fourth quarter of 2023, which, alongside easing inflationary pressures and a stable labour market contributed to a positive outlook. Communication services and financial sectors led the gains, while materials, consumer discretionary (non-essential goods and services), and real estate sectors lagged.

European markets also saw gains, with the MSCI Europe Index returning 3.2%, driven mainly by the IT and communication services sectors. This was despite some indicators pointing to challenges in the real economy (non-financial goods and services), such as a stagnant manufacturing sector. There have, however, been improvements in consumer confidence and a stabilisation in overall economic growth.

Emerging Markets encountered challenges, with the MSCI Emerging Market Index declining by -1.6%. China was the primary detractor, with the MSCI China Index returning -10.4%, despite attempts by the Chinese government to intervene in equity markets and provide stimulus. 

The Australian equity market also produced positive returns, with the ASX 300 index returning 1.1%. Sector performance varied, with energy (+5.2%) and financials (+5.0%) sectors outperforming, while materials (-5.0%) and utilities (-1.5%) experienced declines. At its February 2024 meeting, the Reserve Bank of Australia (RBA) opted to maintain interest rates at 4.35%, with the objective of continuing to guide inflation towards the target range.

Bond market returns were modest over January 2024, as markets processed shifting expectations about the likelihood and timing of rate cuts during 2024. The US 10-year government bond yield increased by 7 basis points to 3.95%, and the Australian 10-year government bond yield rose by 5 basis points to 4.01%.

The Australian Dollar depreciated against most major currencies during the month, registering a 3.1% decline against the US Dollar and a 3.0% decrease against the Euro.

Staying focused on the long term 

In the short term, investment markets go through many cycles of peaks and dips. Going through short-term fluctuations is a normal part of investing.

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. While past performance is not a reliable indicator of future performance, history shows that markets recover from downturns and grow again.

However, 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.