15 April 2024
AustralianSuper members benefitted from the Fund’s investment performance during the March 2024 quarter. All diversified PreMixed and DIY Mix investment options finished in positive territory for both the quarter and financial year to 31 March 2024.
AustralianSuper’s flagship Balanced option (Accumulation), where most members are invested, returned 4.56% for the quarter ending 31 March 2024. The Balanced option for Choice Income (Retirement) accounts returned 4.94%.
AustralianSuper’s Chief Investment Officer Mark Delaney noted, “We’re always pleased to deliver positive performance for members. As the economic outlook improves, we’re prepared to capitalise on investment opportunities ahead. The portfolio is well positioned to provide a balance of growth potential and downside protection. As always, it’s important for members to remain focused on the long term.”
Third quarter investment performance
Listed shares were the largest contributor to positive performance during the quarter. A combination of resilient economic growth, stronger than expected corporate earnings and continued positive sentiment – particularly around the technology sector and artificial intelligence – pushed share markets higher.
Meanwhile, inflation and interest rates remained a key focus for investors. As inflation levels have fallen substantially from their highs, it’s drawn optimism from investors that interest rates have likely peaked. The prospect of interest rate easing has continued to drive investment returns.
After another positive quarter, AustralianSuper remains a top performing super fund over the long term. The Balanced option ranks #2 over the last 10 and 20 years for investment performance1.
Super and TTR Income investment option performance as at 31 March 2024
| INVESTMENT OPTION | 3 MONTHS | FYTD | 1 YEAR | 5 YEARS PA | 10 YEARS PA | 15 YEARS PA |
|---|---|---|---|---|---|---|
| PreMixed Options | ||||||
| High Growth | 5.91% | 10.07% | 12.73% | 8.95% | 9.34% | 9.69% |
| Balanced | 4.56% | 8.21% | 10.07% | 7.63% | 8.31% | 8.75% |
| Socially Aware | 5.07% | 8.37% | 10.17% | 6.57% | 7.37% | 8.55% |
| Indexed Diversified | 6.06% | 11.35% | 13.78% | 7.86% | 7.37% |
|
| Conservative Balanced | 3.22% | 6.24% | 7.22% | 5.54% | 6.46% | 7.30% |
| Stable | 1.83% | 4.32% | 4.52% | 3.65% | 4.90% | 5.76% |
| DIY Mix Options | ||||||
| Australian Shares | 5.78% | 13.75% | 14.83% | 10.67% | 9.42% | 10.78% |
| International Shares | 13.53% | 17.80% | 24.56% | 12.55% | 12.29% | 11.89% |
| Diversified Fixed Interest | 0.08% | 2.83% | 1.82% | 0.57% | 2.49% | 4.33% |
| Cash | 1.01% | 2.99% | 3.82% | 1.49% | 1.80% | 2.44% |
AustralianSuper investment returns are based on crediting rates, which are returns less investment fees and costs, transaction costs, the percentage-based administration fee deducted from returns from 1 April 2020 to 2 September 2022 and taxes. Returns from equivalent options of the ARF and STA super funds are used in calculating return for periods that begin before 1 July 2006.
For TTR Income accounts, the investment return is based on the crediting rate for super (accumulation) options. From 1 April 2020 to 2 September 2022 the crediting rate includes an administration fee that is deducted from investment returns for super (accumulation) accounts. TTR Income accounts were adjusted to refund the administration fee deducted from investment returns. All TTR Income administration fees are deducted from account balances.
Choice Income investment option performance as at 31 March 2024
| INVESTMENT OPTION | 3 MONTHS | FYTD | 1 YEAR | 5 YEARS PA | 10 YEARS PA | 15 YEARS PA |
|---|---|---|---|---|---|---|
| PreMixed Options | ||||||
| High Growth | 6.48% | 11.13% | 14.07% | 9.86% | 10.31% | 10.79% |
| Balanced | 4.94% | 9.04% | 11.12% | 8.29% | 9.12% | 9.72% |
| Socially Aware | 5.51% | 9.22% | 11.36% | 7.24% | 8.21% | 9.46% |
| Indexed Diversified | 6.77% | 12.71% | 15.42% | 8.80% | 8.39% | |
| Conservative Balanced | 3.55% | 7.01% | 8.15% | 6.16% | 7.30% | 8.17% |
| Stable | 2.07% | 4.90% | 5.23% | 4.06% | 5.52% | 6.51% |
| DIY Mix Options | ||||||
| Australian Shares | 6.35% | 15.24% | 16.49% | 12.09% | 10.57% | 12.14% |
| International Shares | 14.69% | 19.39% | 26.88% | 13.53% | 13.44% | 12.92% |
| Diversified Fixed Interest | 0.08% | 3.33% | 2.14% | 0.67% | 2.84% | 5.01% |
| Cash | 1.17% | 3.50% | 4.48% | 1.75% | 2.12% | 2.83% |
Choice Income investment returns are based on crediting rates, which are returns less investment fees and costs, transaction costs and taxes.
Outlook ahead
With inflation levels moderating and the global economy growing modestly, central banks are looking at the potential of easing interest rates. They will face a delicate balancing act ahead – if they cut rates too early inflation could bounce back, but if they cut rates too late it could impact employment and economic growth. So, we’ll continue to monitor central banks closely.
The investment team has also been adjusting the positioning of the portfolio based on an improved economic outlook. This has meant a moderate increase in our exposure to growth assets, like listed equities. Over time, we expect to add additional exposure through private market assets, such as private equity, real assets (infrastructure and property) and private credit.
Members’ retirement savings are in good hands at AustralianSuper. Our experienced, global team of investment professionals are closely monitoring central bank activity, key economic indicators, valuation trends and geopolitical developments to better understand how the economic cycle will progress. As active managers, we will seek to deploy capital when opportunities present themselves.
It’s important to remember that superannuation investing is focused on the long term. The investment team is experienced in actively managing the portfolio through market cycles. As you can see below, despite ups and downs in the market, members’ super invested in the Balanced option has grown significantly over the past 20 years. A balance of $100,000 invested 20 years ago would be worth over $470,000 today – more than four times the initial investment amount.
Growth of $100,000 from 31 March 2004 to 31 March 2024 in the Balanced option
AustralianSuper investment returns are based on crediting rates, which are returns less investment fees and costs, transaction costs, the percentage-based administration fee deducted from returns from 1 April 2020 to 2 September 2022 and taxes. Returns don’t include all administration, insurance and other fees and costs that are deducted from account balances. Returns from equivalent investment options of the ARF and STA super funds are used for periods before 1 July 2006.
References
1. AustralianSuper Balanced investment option compared to the SuperRatings Fund Crediting Rate Survey – SR50 Balanced (60-76) to 31 March 2024. Returns from equivalent investment options of the ARF and STA super funds are used for periods before 1 July 2006.
Investment returns aren’t guaranteed. Past performance isn’t a reliable indicator of future returns.
This may include general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision consider if the information is right for you and read the relevant Product Disclosure Statement, available at australiansuper.com/PDS or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD.
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