As the Fund celebrates its 15th birthday, members are celebrating record returns for the 2021 financial year. In this latest performance update, Head of Total Portfolio Management – Alistair Barker, takes a look the Fund’s performance for the 12 months ending 30 June 2021, as well as the benefits of staying invested over the long-term.
Hi everyone and welcome to our latest performance update.
The past twelve months have been extraordinary for many reasons, but
most importantly for members, the Balanced option has delivered
exceptional returns - 20.43% in Accumulation and 22.30% in Choice Income
This means a significant boost to member balances.
From the 1st of July
2020 to the 30th of June
2021, investment markets rebounded from the impacts of COVID-19.
Governments and central banks all around the world, responded to the
pandemic with extraordinary fiscal and monetary programs to support their
These programs, along with the global roll-out of vaccines, helped to
revive consumer and business confidence, providing an extraordinary boost to
investment markets – especially for Australian and international shares.
In the past year, Australian shares have risen over 27%, led
by consumer spending on discretionary items, and the financial sector as
well as some technology companies.
International shares also delivered returns of over 27% in Australian
dollar terms, with similar returns from both developed and emerging
Once again, these results highlight that
investment markets recover after downturns. This is why it’s so important for
members to see super as a long-term investment, and to seek advice
before making changes when markets are volatile.
The AustralianSuper investment portfolio is diversified across several
asset classes and our performance and returns have been
broad, coming across most areas of the portfolio.
The returns from listed shares and
private equity helped to deliver the outstanding performance of
the Balanced option. Listed equities performed over 27% for the year
and the private equity portfolio returned over 30% for the
Our investments in mid risk asset
classes like infrastructure and credit also contributed with returns over 10%
for the year.
Fixed interest assets also played
their role, providing portfolio stability, while also outperforming
These assets all contributed to the phenomenal 20.43% return on
the Balanced option.
This result is especially significant for members. It’s the best
financial year return for the Balanced option since it started in
August 1985, almost 36 years ago.
We are so proud to deliver such strong and consistent returns for
AustralianSuper members. The Balanced
option continues to be a top performing fund.
At the end of June this year, the 15-year performance of the Balanced
option was 7.49% per annum after tax.
This means that $50,000 invested 15 years ago would now be worth
$147,859 - nearly triple the initial balance 15 years ago.
These results highlight the importance of experience in navigating
volatile markets. The Fund’s expertise in investing through market cycles helps
protect and grow member balances.
So … where to from here - for the economy and investment markets?
As we look to the longer term, investment markets are expected to move
out of the current growth cycle.
To explain what this means, we’ve assembled specialists from across the
Fund, including our Global Economist Mark Tierney, in our latest Investment Update
webinar. You can view the webinar free of charge on our website.
Thank you for joining us today.
As always, if you have any questions, please call or email
us. Or find us at AustralianSuper.com.
Investment update and outlook
Watch the highlights from our live Investment update and outlook webinar, held on Thursday 5 August 2021, to learn about investment returns over the past financial year, our outlook for investment markets for the year ahead, developments in the Environmental Social Governance (ESG) space, and more.