AustralianSuper’s Deputy Chief Executive and Chief Investment Officer Mark Delaney gives an update on the Fund’s performance.
Mark talks about what's been driving AustralianSuper's strong long-term performance over the last 10 years, market and economic uncertainty and what the future looks like.
Investment performance update
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Performance update with Mark Delaney, Deputy Chief Executive and Chief Investment Officer
Hello, I’m Mark Delaney
It’s been another year of strong performance for your super, with all investment options delivering positive returns.
Most members invest in the Balanced option, which has just clocked its 10th year in a row of positive returns.
The Balanced option has a history of being a top performing fund, and is the number one performing option against its peers over 10 and 15 years.
If you’d invested $50,000 in the Balanced option in July 2009, your retirement savings would have more than doubled over the last 10 years.
Despite share markets setting record highs in recent months, it’s not going to be an easy investment environment going forward.
We’ve got record low interest rates, here and in other developed countries.
Geo-political risks are creating challenges.
The US/China trade conflict has been a major contributor to the share market volatility during the last year.
There have also been tensions in the UK about Brexit, which has led to the resignation of Theresa May and the recent appointment of Boris Johnston.
We’ve been expecting the end of the current growth cycle for a while now, and have been preparing for it.
Economic growth is expected to slow in developed markets, and has also been falling for a while in China.
We’re staying diversified, as that’s the most important thing you can do when investing over the long term.
In our PreMixed options, we’ve increased the weighting to more defensive assets like fixed interest.
We’re also holding unlisted assets like infrastructure, which was the best performing asset class last year.
These assets help us reduce the impact of short-term market volatility on returns, while contributing to long-run growth.
While we may experience times where returns are lower or even negative, history has shown that it’s generally best to stay invested.
This way you can benefit from market rebounds and future growth, just like we’ve enjoyed over the last 10 years.
When change comes so does new opportunities.
We’re constantly looking at new ways to invest and source quality assets around the globe so we can continue to grow your retirement savings in the decades to come.
If you’d like to keep up to date with how we’re investing your super, visit our website.