Another great year of super returns

June 2018
Balanced option returns 11.08% for year to 30 June 2018.#

It’s been another great year for AustralianSuper members, with the Balanced option delivering its ninth year in a row of positive returns. It’s the fifth year out of the last six that returns have been in double digits. The Balanced option ranked in the top three performing funds over 1, 3, 5 and 20 years to 30 June 2018. 

Balanced option returns to 30 June 2018.

1 year    3 years (pa)  
   AustralianSuper  Median  AustralianSuper  Median
Super†  11.08%  9.22% 9.30%  7.29%
Retirement^               12.01%  9.92% 10.04%  7.94%

All other investment options delivered positive returns – those with the highest weightings to shares and unlisted assets, such as infrastructure, were the best performers. In total, returns added around $13 billion to the retirement savings of more than 2.2 million members in the financial year.

Deputy Chief Executive and Chief Investment Officer, Mark Delaney, said: 'Stable global growth has supported markets across asset classes and as a result AustralianSuper members have seen another year of very impressive returns.'

The key drivers of performance for the Balanced Option were a high allocation to listed share markets and unlisted assets, such as infrastructure, along with a lower weightings to the poorer performing fixed interest and cash asset classes.

Returns proved to be resilient despite an increase in share market volatility in the second half of the financial year.

'In a similar scenario to last year, global political uncertainty and increased trade protectionism did not have a sustained negative affect on markets,' said Delaney.


Looking forward

We’ve enjoyed a long period of very strong growth, with returns for the Balanced option above their long-term average for seven out of the last ten years.

'We know that at some point in the future markets will be more subdued,' said Delaney. 'We will be keeping an eye on key policy makers, particularly the US Federal Reserve in relation to interest rates while also monitoring any action in relation to tariffs or other measures which may impact global trade.'

'AustralianSuper’s aim will continue to be maintaining a widely diversified portfolio and actively managing it in order to provide stable long-term returns for members.'

Fluctuations in returns are normal, so it’s important to stay focused on the long term.  Over the last 20 years the investment returns of the Balanced option have increased members’ retirement savings by more than four and a half times – every $100 invested at the beginning of the 1998 financial year would be worth over $460 by 30 June 2018*. 

Investing to make your retirement savings last longer

Find out more about your performance

View the performance of all AustralianSuper investment options

# Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns. 

† Source: SuperRatings Fund Crediting Rate Survey June 2018– SR Balanced (60-76) Index

^ Source: SuperRatings Pension Fund Crediting Rate Survey June 2018– SRP Balanced (60-76) Index

* Source: AustralianSuper. Investment returns of the Balanced option from 1 July 1998 to 30 June 2018. Returns from equivalent investment options of ARF and STA are used in calculating returns for periods that begin before 1 July 2006. Investment returns are net of investment fees,costs and taxes, but do not include the impact of administration fees and insurance fees that are deducted from member’s account balances.

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