Australian superannuation funds fell in value by 0.4% in September on the back of weaker international and local share markets, industry analysts Chant West said.

The fall brings the return so far this financial year for the median growth fund back to 0.8%, they said.

Difficult month across the board

Chant West Head of Superannuation Investment Research Mano Mohankumar said September was a challenging month for investment markets with shares and bonds retreating amid rising bond yields, increasing oil prices and sticky inflation.

He added:

Australian shares slipped 2.4% while developed market international shares fell 0.7% in hedged terms. With yields rising, bonds offered little protection, with Australian and international bonds down 0.9% and 1.7%, respectively. Despite all of that, the loss for the median growth fund in September was limited to 0.4%, with the Australian dollar playing an important diversification role as it depreciated from US$0.72 to US$0.69 over the month. That translated the 0.7% hedged loss on developed international shares into a solid gain of 1.9% in unhedged terms, while emerging markets shares rose 2.4%. On average, super funds hold about 70% of their international shares unhedged. Funds’ unlisted asset exposures also helped cushion the impact.

In terms of the different risk settings, all growth funds shed 0.6% for the month, while conservative, balanced, growth and high growth all fell 0.4%, Chant West said.

Mr Mohankumar said it was important to remember that superannuation is a long-term proposition.

He added:

Since the introduction of compulsory super in July 1992, the median growth fund has returned 8% p.a. The annual CPI increase over the same period is 2.7%, giving a real return of 5.3% p.a. – well above the typical 3.5% target. Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020, and the high inflation and rising interest rates in 2022 – super funds have returned 6.7% p.a., which is still ahead of the typical objective.

Longer-term picture is rosy

Chant West said the median growth fund has, for the past couple of decades, exceeded its return objective over rolling 10-year periods, except for two periods between mid-2008 and late-2017.

They added:

This is because of the devastating impact of the 16-month GFC period (end-October 2007 to end-February 2009) during which growth funds lost about 26% on average.

The S&P/ASX 200 Index (ASX: XJO) fell almost 3.2% in September to end at 8,789.3 points.

Some of the companies which performed well included Codan Ltd (ASX: CDA), Ingenia Communities Group (ASX: INA)and Reliance Worldwide Corporation Ltd (ASX: RWC).

The post Superannuation funds fell in value in September. See how much they’re down appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Pro Medicus Ltd (ASX: PME) shares are in focus on Monday morning following another positive announcement.

The medical imaging technology company has been building an impressive presence in the United States, and its latest news adds to that progress.

But is Pro Medicus a share I would buy for the long term?

Here’s what I think.

Another contract win

Pro Medicus announced this morning that it has secured a new seven-year contract with Billings Clinic in the United States, worth approximately $24 million.

It is another encouraging addition to the company’s growing portfolio of healthcare customers.

I like the consistency with which Pro Medicus has been winning these agreements.

The company secured 10 new contracts worth at least $407 million during FY26, alongside six contract renewals.

I think that demonstrates how well its Visage imaging platform is being received by major healthcare providers.

And with these contracts often running for several years, each new agreement provides another source of revenue that can contribute to earnings over time.

Today’s announcement is another step in that process.

Why I like the long-term outlook

One reason I am very positive on Pro Medicus is the growing importance of medical imaging.

Scan volumes are increasing at a time when many countries are facing shortages of radiologists, putting pressure on hospitals to make better use of their existing specialists.

Pro Medicus helps address this challenge through software that allows radiologists to access and analyse complex images more efficiently.

I think that need for greater productivity could become an increasingly important driver of demand for its technology.

There is also considerable room to expand. Pro Medicus estimates that it has captured around 11% of the US market, leaving the vast majority still available to pursue.

Of course, winning new customers isn’t straightforward. Hospitals need reliable systems that integrate with their existing operations, and switching providers can be complicated.

But I think that also works in Pro Medicus’ favour once its technology is installed. The company renewed all six customer contracts that came up for renewal in FY26, with higher transaction fees. For me, that is encouraging evidence of the value customers place on its software.

More ways to grow

Another reason I like Pro Medicus is that its opportunity extends beyond traditional radiology.

The company has been expanding into cardiology, while developing new capabilities in digital pathology and AI-supported reporting.

I think these developments could allow it to provide more services to existing customers while competing for a wider range of healthcare contracts.

Foolish takeaway

I think Pro Medicus remains one of the strongest long-term growth opportunities on the ASX.

Today’s contract is another positive development, but I am much more interested in how much larger its business could become over the next decade.

With plenty of room to expand in medical imaging and a growing range of products, I would be happy buying Pro Medicus shares with a long-term view.

The post Should I buy Pro Medicus shares after its big news? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Sinclair Gold Ltd (ASX: SGC) are up more than 100% over a 12-month period, but the analyst team at Barrenjoey believes they could go much higher.

Barrenjoey has just initiated coverage on Sinclair and has an overweight recommendation and a very bullish share price target, which I’ll get to shortly.

First, let’s look at some news from the company.

More solid gold exploration results

Sinclair has today reported new drilling results from its Mt Henry deposit in Western Australia, including an intersection of 0.4m at a grade of 122.7 grams per tonne.

Sinclair Gold Chief Executive Jeff Sansom said regarding the results:

The latest drilling continues to deliver exceptional grades and broad intersections well beyond the ~0.9 million ounce Mt Henry Resource footprint, highlighting significant growth potential. Results across northern, central and southern Mt Henry continue to expand the footprint of gold mineralisation. High-grade gold intersected 250m south of the current Mt Henry Resource boundary, beneath previous Birthday Gift drilling, has also identified an exciting target for follow-up drilling.

Mr Sansom said the company had doubled the gold resource to 1.8 million ounces since February, “and these latest results demonstrate there is plenty more to come”.

He added:

With five rigs drilling, assays pending from 30 holes and much of the 16km mineralised corridor still untested, we are well positioned to deliver further Resource growth and new discoveries.

Shares looking cheap, broker says

Barrenjoey said in its research note that continued exploration success “could enable development of a relatively large (5 million tonne per annum), purpose-built processing plant capable of producing more than 150koz of gold per year”.

Barrenjoey’s price target assumes first production from a mine at Mt Henry in FY32.

They said:

Our development scenario includes an open pit mining operation, feeding a 5Mtpa carbon-in leach process plant sourcing ore from the Selene, Mt Henry and other minor deposits. Our mining inventory is based on projected resource growth at the Selene and Mt Henry deposits and assumes exploration success within other parts of the project area. Utilising a 12% weighted average cost of capital and a US$4,000/oz gold price, our development scenario generates a build date net present value of $1,729m with life-of-mine average annual gold production of about 153koz.

Barrenjoey has a price target of $3.05 on Sinclair shares compared to $1.07 currently.

If achieved, this would constitute a 185% return. Sinclair Gold is valued at $200.5 million.

The post This ASX gold explorer could rise 180%: Broker appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.