December 2023 quarterly investment update
CareSuper finished the 2023 calendar year strongly, mainly driven by strong share and bond markets in the December quarter.
Performance
Our MySuper Balanced option delivered returns of 3.4% for the quarter and 9% for the calendar year. The Balanced Pension option, too, demonstrated strong performance, returning 3.6% and 9.2% over the same periods.
Our long-term returns remain strong with the Balanced (MySuper) option delivering an average return of 7.5% per year over the past 10 years for super members, and 8.04% per year for Pension members. These results are well ahead of the industry median and rank CareSuper amongst the top performers.*
Watch our quarterly investment update by our Chief Investment Officer Suzanne Branton.
Performance as at 31 December 2023
| 3 months | 1 year | 10 years (p.a.) | |
| Balanced (MySuper) | 3.41% | 9.03% | 7.45% |
| Pension Balanced | 3.60% | 9.23% | 8.04% |
Returns are net of investment fees and tax, except for the Pension returns which are untaxed.
View our full investment returns for all options.
The key drivers behind our returns
While there were some weaker periods, overall, the year witnessed robust and resilient performance, mainly driven by strong share and bond markets in the December quarter.
So, what drove the year-end surge? It was mainly that investors concluded central banks would be cutting interest rates in 2024. This is because as the year wore on, inflation fell, even though economies remained strong.
Given this context, global shares were the key driver of performance throughout the December quarter and the year. However, it is important to note that the strongest gains were confined to shares linked to technology and artificial intelligence.
The Australian share market also experienced a robust quarter, especially in the resources and banking sectors, mitigating losses from the energy sector.
Fixed interest markets delivered positive returns for the quarter and the year, also benefiting from the shift in the interest rate cycle.
The Reserve Bank of Australia opted to raise rates further in the December quarter, taking the cash rate to 4.35% - its highest level in twelve years.
Meanwhile, the property market is still adjusting to the earlier increases in interest rates and therefore ended the December quarter and the year with negative returns.
What can we expect going forward
In January, financial markets experienced a slight uptick from year-end, with no significant changes in the market environment.
‘As we look ahead to the rest of 2024, the true course of the interest rate cycle will become clear. ‘Can interest rates fall as much as investors expect at the same time that economies remain resilient? Moreover, with ongoing conflicts, geopolitical tensions, and elections looming worldwide, 2024 is shaping up to be an eventful year – one that may well bring increased volatility.
‘In 2024, our commitment to actively selecting the best investments and protecting your savings remains crucial. It’s our long-term strategy, which ensures strong, consistent results for our members’ emphasises Branton.
*SuperRatings Fund Crediting Rate Survey – SR50 Balanced (60-76) Index, December 2023.
CareSuper’s performance figures shown are net of investment fees, indirect costs and tax and have been rounded to two decimal places. Past performance is not a reliable indicator of future performance and you should consider other factors before choosing a fund or changing your investments.