We’re proud of our 18.66% return last year
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We’re proud of our 18.66% return last year

The MySuper Balanced (default) investment option delivered an 18.66% return, one of the highest in our 43 year history

We're proud of our 18.66% return for members in our MySuper Balanced (default) investment option last year - one of the highest financial year returns in our history.

While Australian investment markets are likely to be held back in the short term by the recent lockdowns, the outlook for global investment markets is very strong as economies across the world open up from pandemic-related shutdowns.  

How the markets performed

As the world has started to re-open, investment markets have surged ahead. This is reflected in the fact that investment markets have recovered strongly during the past financial year.  

Highlights

  • MySuper Balanced option returned 18.66% for the year ended 30 June 2021 for Super members
  • Balanced option returned 20.77% for the year ended 30 June 2021 for Pension members
  • Member returns were bolstered by strong performance from share market investments  

Share markets delivered more than 27% and were the primary driver of the exceptional returns to members over the year. Investment markets were buoyed by the economic impact of global COVID vaccination programmes and the favourable supportive policies from governments (increases in government spending) and central banks (cheaper debt). Listed Property markets were also very strong over the financial year.

Fixed Interest markets were the only negative where increases in interest rates led to price falls over the year. Over the past two years, LUCRF Super has been allocating less to Fixed Interest and this was a benefit to members over the financial year. 

What this means for your LUCRF Super account

Returns were strong over the financial year. While these very high returns are unlikely to continue, LUCRF Super continues to manage the investment portfolio to seek the best possible outcomes on current and projected market conditions. 

For the default MySuper Balanced option, which most of our members are invested in, and the Balanced option for Pensioners, we retained full exposure to share markets over the latter part of 2020 and into 2021. This meant that members participated in the stronger share markets returns during the financial year. Full exposures are being maintained given the gradual opening of economies and continued strong support for share markets. 

As always, we remain vigilant for strong investment opportunities that will perform well and complement existing investments. We strive to maximise our members’ account balances whilst not taking excessive risks.

Looking ahead

Investors are now looking ahead to establish how to position themselves in a “post-COVID world”.   This is likely to be a world that is more “open” but with significant changes to society and human behaviour. We will continue to focus on these issues and how they are considered and reflected in the investment portfolio.  

The recovery from the 2020-21 COVID-19 economic recession is ahead of most expectations.  However, there are signs that the strong economic growth may lead to higher inflation, particularly in the United States.  While there is no certainty this will happen, the possibility of higher inflation is an influence on the positioning of your investment portfolio.   

Super is a long-term investment

What’s important to remember during highs like these, lows may follow which is why it’s essential that super is regarded as a long-term investment, one that will ride through the economic highs and lows. 

You can see the performance of all our investment options set out in the performance table on our website.

Your super is invested by expert investment managers to help it grow. This means you shouldn’t have to think about it daily as we do all the hard work for you. But if you need some help understanding your options, there’s a team of experts ready to guide you.  You can speak to one of our experienced financial advisers at no extra cost. 

Super & TTR Investment returns

Investment options4th Quarter (1 Apr – 30 Jun 2021)FY (1 Jul – 30 Jun 2021)

MySuper Balanced (default)

5.63%

18.66%

High Growth

6.56%

23.29%

Moderate

4.21%

13.67%

Conservative

2.92%

9.76%

Indexed Balanced

5.71%

N/A

Australian Shares (Active)

7.29%

27.70%

International Shares (Active)

8.82%

30.99%

Australian Shares (Indexed)

7.81%

N/A

International Shares (Indexed)

8.90%

N/A

Property

9.70%

29.92%

Cash

0.19%

0.81%

See here for performance from all years. Past performance is not a reliable indicator of future investment returns.

Pension Investment returns

Investment options4th Quarter (1 Apr – 30 Jun 2021)FY (1 Jul – 30 Jun 2021)

Balanced (default)

6.03%

20.77%

High Growth

7.09%

26.09%

Moderate

4.47%

15.34%

Conservative

3.08%

10.89%

Indexed Balanced

6.37%

N/A

Australian Shares (Active)

7.89%

30.74%

International Shares (Active)

9.25%

33.90%

Australian Shares (Indexed)

8.40%

N/A

International Shares (Indexed)

8.86%

N/A

Property

10.66%

33.51%

Cash

0.23%

0.95%

See here for performance from all years. Past performance is not a reliable indicator of future investment returns.

Do you need some help understanding your options?

There’s a team of experts ready to guide you. Speak to one of our experienced financial advisers at no extra cost.

Request a callback

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