Investment returns are above average!
The last 12 months have seen a lot of ups and downs in investment markets.
While most members saw their super balance go down in the first quarter of 2020 (especially February/March 2020), we’re pleased to report that this financial year the market is continuing to rebound and investment returns are on the rise, along with members super balances.
Rallying markets drive positive member returns
Our investment options are all performing above average. With most being in the top or second quartiles compared with other super funds this financial year to date. This is a testament to our strong investment strategy and investment beliefs and we hope to continue to outperform our objectives across all investment options.
See below a table that demonstrates how our investment options rank in comparison to other funds that offer a similar investment option between the current financial year to date and the last 12 months.
|investment options||FYTD||Last 12 months||Fytd||last 12 months|
|Balanced||SR50 Balanced (60-76) index||23rd/50||24th/50||15th/48||14th/48|
|Balanced (MySuper)||SR50 MySuper index||20th/50||25th/50||N/A||N/A|
|Australian Shares (Active)||SR50 Australian Shares index||29th /49||26th/50||29th/49||26th/50|
|International Shares (Active)||SR50 International Shares index||15th /49||11th/49||15th/48||12th/48|
|Property||SR25 Property Index1||8th /25||24th/25||7th/25||22nd/25|
|Cash||SR50 Cash index||2nd/49||2nd/50||2nd/48||2nd/48|
|High Growth||Growth (77-90)||47th/160||10th/165||15th/72||7th/74|
|Moderate||Conservative Balanced (41-59)||33rd/118||5th/121||14th/73||3rd/76|
|Conservative||Capital Stable (20-40)||11th/123||3rd/127||8th/95||2nd/97|
1 Our Property option is invested entirely in an indexed (or passive) exposure to A-REITs (formerly known as Listed Property Trusts), which means returns can be volatile over the short-term, including when compared to peers. For more information, see our Investment Guide
Invest for the long-term
You may have noticed that the market upheaval over the last 12 months has resulted in super balances going up and down.
For instance, let’s say it’s the 1st January 2020, you currently have $10,000 invested in our MySuper Balanced (default) option. You’ve started to hear reports about a mysterious illness and by 25th January 2020 the first case of COVID-19 is reported in Australia.2
On the 20th February 2020, share markets peaked and then proceeded to fall 30-40% until the 23rd March. That same $10,000 you had invested would have hit a low of $8,627, which you can see in the graph below.
It’s important to remember in these moments that your superannuation is an investment and, like most investments, it’s completely normal for it to experience market ups and downs. For most people, growing your super balance is something that happens over your entire working life and should be thought of as a long-term investment.
Using the same example as above, if you’d stayed invested in the MySuper Balanced option, your initial $10,000 would have been $10,000 again by the 9th November 2020.
As investment returns continue to rebound (which you can see from the chart below) that same $10,000 is now $10,691 as at 31 March 2021. This is a good example of how markets recover from downturns.
The fall, and subsequent recovery in member balances shows the importance of staying the course when it comes to your long-term investment strategy.
MySuper Balanced returns
Growth of $10,000 invested on 31 December 2019
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.
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