Superannuation funds deliver 9.1 percent return for FY24
International shares were the biggest contributor to surprisingly strong gains
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Strong share markets in Australia and overseas drove better-than-expected returns for superannuation growth funds in FY24, according to Chant West. The median growth fund, which comprises 61 percent to 80 percent growth assets likes shares, returned 9.1 percent in FY24. This was virtually a mirror performance of FY23 when the median superannuation growth fund returned 9.2 percent.
Chant West Senior Investment Research Manager, Mano Mohankumar, said FY24 was the 13th positive year for superannuation returns over the past 15 years. “The return experience over the past two years in the face of much uncertainty is another reminder of the importance of remaining patient and maintaining a long-term focus,” he said. “… FY23 kicked off amid surging inflation and uncertainty around when interest rate hikes might come to an end. At that time, I don’t think anyone could have forecast a 19 percent return over the subsequent two years and the small FY22 loss of 3.3 percent now seems like a distant memory.”
Mr Mohankumar said international shares were the biggest contributor to superannuation returns in FY24. As a group, international shares soared by 21.5 percent. The growth of overseas stock values was led by the American technology sector, with Magnificent Seven member Nvidia once again delivering astounding share price gains of 192 percent in FY24. Australian shares delivered total returns of 11.9 percent (including dividends) over FY24.
All major asset classes except unlisted property delivered positive returns in FY24, according to Chant West’s data. Australian listed property outshone international real estate with an impressive 23.8 percent return in FY24. International listed property returned 4.6 percent. High interest rates saw cash investments return a median 4.4 percent. Australian bonds returned 3.7 percent and international bonds returned 2.7 percent.
Unlisted property was dragged down by the office sector, with revaluations of buildings trending lower now that more people are working from home permanently following the pandemic. This has affected the demand for office space worldwide. In Australia, the average office occupancy rate is 76 percent of pre-pandemic levels, while US occupancy rates are about 50 percent, according to CBRE research.
Superannuation funds that had a higher allocation to shares and other growth assets outperformed the funds with balanced and conservative strategies, which are popular with pre-retirees. ‘All growth’ superannuation funds, which have a 96 percent to 100 percent allocation to growth investments, delivered a median 12.7 percent return in FY24. Balanced funds, which have a 41 percent to 60 percent allocation to growth assets, returned 7.4 percent. Conservative funds, which have just 21 percent to 40 percent in growth assets and higher allocations to defensive investments such as bonds, fixed income and cash, delivered 5.5 percent.
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For self-employed Australians, navigating the mortgage market can be complex—especially when income documentation doesn’t fit the standard mould. In this guide, Stephen Andrianakos, Director of Red Door Financial Group, outlines eight flexible loan structures designed to support business owners, freelancers, and entrepreneurs.
1. Full-Doc Loan
A full-doc loan is the most straightforward and competitive option for self-employed borrowers with up-to-date tax returns and financials. Lenders assess two years of tax returns, assessment notices, and business financials. This type of loan offers high borrowing capacity, access to features like offset accounts and redraw facilities, and fixed and variable rate choices.
2. Low-Doc Loan
Low-doc loans are designed for borrowers who can’t provide the usual financial documentation, such as those in start-up mode or recently expanded businesses. Instead of full tax returns, lenders accept alternatives like profit and loss statements or accountant’s declarations. While rates may be slightly higher, these loans make finance accessible where banks might otherwise decline.
3. Standard Variable Rate Loan
A standard variable loan moves with the market and offers flexibility in repayments, extra contributions, and redraw options. It’s ideal for borrowers who want to manage repayments actively or pay off their loans faster when income permits. With access to over 40 lenders, brokers can help match borrowers with a variable product suited to their financial strategy.
4. Fixed Rate Loan
A fixed-rate loan offers repayment certainty over a set term—typically one to five years. It’s popular with borrowers seeking predictability, especially in volatile rate environments. While fixed loans offer fewer flexible features, their stability can be valuable for budgeting and cash flow planning.
5. Split Loan
A split loan combines fixed and variable portions, giving borrowers the security of a fixed rate on part of the loan and the flexibility of a variable rate on the other. This structure benefits self-employed clients with irregular income, allowing them to lock in part of their repayment while keeping some funds accessible.
6. Construction Loan
Construction loans release funds in stages aligned with the building process, from the initial slab to completion. These loans suit clients building a new home or undertaking major renovations. Most lenders offer interest-only repayments during construction, switching to principal-and-interest after the build. Managing timelines and approvals is key to a smooth experience.
7. Interest-Only Loan
Interest-only loans allow borrowers to pay just the interest portion of the loan for a set period, preserving cash flow. This structure is often used during growth phases in business or for investment purposes. After the interest-only period, the loan typically converts to principal-and-interest repayments.
8. Offset Home Loan
An offset home loan links your savings account to your mortgage, reducing the interest charged on the loan. For self-employed borrowers with fluctuating income, it’s a valuable tool for managing cash flow while still reducing interest and accelerating loan repayment. The funds remain accessible, offering both flexibility and efficiency.
Red Door Financial Group is a Melbourne-based brokerage firm that offers personalised financial solutions for residential, commercial, and business lending.
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