Market Overview – September Quarter 2021
22 November 2021Section Heading
Market update and impacts on your super
The Triple S (untaxed) Balanced Default Option returned 1.5% for the September quarter, and 20.4% for the past 12 months to 30 September (1/10/2020 to 30/09/2021).
All Super SA investment options had positive returns for the September quarter, except the Cash Option, which was flat. The performance for the growth-oriented investment options were helped by favourable returns in Australian shares, international shares, private markets, and property asset classes.
Triple S returns to September 2021
|
Investment option |
3 months % |
1 year % |
3 years % p.a. |
5 years % p.a. |
10 years % p.a. |
|
Cash |
0.0 |
0.1 |
0.9 |
1.3 |
2.2 |
|
Capital Defensive |
0.3 |
5.5 |
4.4 |
4.4 |
5.3 |
|
Conservative |
0.5 |
9.6 |
5.9 |
6.0 |
6.9 |
|
Moderate |
1.0 |
14.1 |
7.1 |
7.4 |
8.3 |
|
Balanced |
1.5 |
20.4 |
9.3 |
9.4 |
10.0 |
|
High Growth |
1.8 |
23.3 |
9.7 |
10.8 |
11.6 |
|
Socially Responsible |
2.4 |
20.3 |
8.8 |
9.0 |
9.7 |
Returns net of fees and gross of tax, based on Super SA unit pricing formula.
Market overview
Australian and international share markets had positive returns for the quarter, despite the falls in September. Positive economic data and ongoing fiscal support drove upward momentum for most of the period. However, markets fell in September over concerns that supply chain disruptions and energy shortages could lead to persistent higher inflation. This has caused some volatility in markets because inflation rising quickly can cause investments to fall.
Australian share market
Australian shares rose as positive news regarding the rollout of vaccinations in eastern states specifically NSW and Victoria, buoyed hopes of an end to COVID-19 lockdowns. Furthermore, companies reported profit results largely in line with expectations which supported the market. However, commentary around the economic outlook was less positive with rising supply chain pressures, falling iron-ore prices and concerns around inflation.
Global shortages saw oil and gas prices rise sharply over the quarter and the Energy sector was the best performing. Conversely, the biggest laggard by far was Materials, which was the only sector to post a negative return. The large mining stocks fell heavily due to declines in the iron ore price and broader concerns over the slowdown in China’s economic growth.
International share markets
The US and European markets both followed a similar path, posting positive returns over the quarter. By contrast, emerging market shares fell. Asian shares, particularly in China suffered from regulatory changes, property market risks and slowing economic growth.
Fixed Interest
Fixed interest markets were largely unchanged. Lingering inflation increased market expectations for central banks to interest rates earlier and more aggressively than previously anticipated. In response, central banks restated the different conditions required for them to increase interest rates, and their expectation that inflation is still largely transitory. The Reserve Bank Australia (RBA) reiterated their commitment to maintaining accommodative monetary policy until full employment and inflation targets are met.
Cash
The RBA left the Official Cash Rate on hold at 0.1%. This means the interest rate for cash is close to zero. It is expected that the Cash Option will continue to return close to zero over the medium-term, after fees and taxes.