AustralianSuper’s Chief Executive Ian Silk talks about how the Fund delivered record member returns in the Balanced option for the 2021 financial year.
The 2021 financial year saw the biggest ever return for members in the Balanced option1. This is great news for members and a result of the Fund’s expertise, size, scale, and investment approach.
In the 2021 financial year (1 July 2021 – 30 June 2021) member update Ian discusses:
- How the Fund’s Balanced option delivered members a 20.43% return – the highest financial year return in AustralianSuper’s history.
- The Superannuation Guarantee increase from 9.5% to 10%.
- Resigning as the Fund’s Chief Executive, and Paul Schroder’s appointment to the role.
Ian Silk on AustralianSuper’s end of year returns to 30 June 2021
A message from Ian Silk, Chief Executive
2020/21 Financial year update
30 June 2021
What an extraordinary year 2020/21 was. From July to December, we all experienced the uncertainty of lockdowns, a recession and underlying stress. From January, there’s been a sense of growing optimism – we can see our economy rebounding and unemployment rates going down
From an investment perspective, AustralianSuper delivered for members a 20.4%* return for the Balanced option – which is where the vast majority of you are invested. This is the highest financial year return in the Fund’s history. In fact, the more telling 3-year average return has been 9.6%* per annum. And the long term 10-year average was 9.7%* per annum. These are excellent outcomes for members, and a significant boost to your retirement savings.
I’m pleased to say that AustralianSuper remains a top ranked fund†.
While we’re delighted with these results, we do expect much more moderate returns in the medium to long term as we move through the market cycle.
In more good news for Australian workers, from 1 July this year, the Superannuation Guarantee increased from 9.5% to 10%.
AustralianSuper was launched 15 years ago and all our actions and decisions have been and continue to be made in your best financial interests. Today, as Australia’s largest super fund, over 2.4 million Australians, like you, trust us to manage more than $230 billion‡ of their retirement savings. This year we’ve been named as Australia’s most trusted superannuation brand for the ninth year in a row§.
And finally, on a personal note, after 15 years as Chief Executive of this fantastic super fund, I’m resigning. It’s been an enormous honour to lead the largest and best performing fund in the country. And I’m absolutely delighted that Paul Schroder will be the new Chief Executive. Paul has been a senior executive with the Fund for more than 14 years, and most recently as our Chief Risk Officer. Paul is an exceptional individual, and AustralianSuper – and your retirement savings – could not be in better hands.
3 key takeaways
1. AustralianSuper is a top-ranked fund for investment performance over 5, 10 and 15 years*
AustralianSuper delivered a 20.43% return to members in the Balanced option in the 2021 financial year. This is the highest financial year return in the Fund’s history. The 3-year average return has been 9.6% per year. The 10-year average was 9.7% per year. These are excellent outcomes, and help members achieve their best financial position in retirement.
2. The super guarantee has been raised to 10%
From 1 July this year, the Superannuation Guarantee increased from 9.5% to 10%. With 10% of your wages or salary being contributed to super for their retirement, it’s even more important to remember the most important thing about your super – you must ensure you’re in a good fund with strong, long-term investment performance and low fees.
3. AustralianSuper leadership changes
After 15 years as Chief Executive Ian Silk is stepping down. He will be replaced by Paul Schroder. Paul has been a senior executive with the Fund for more than 14 years, most recently as our Chief Risk Officer.
* Based on the AustralianSuper Balanced investment option compared to the SuperRatings Fund Crediting Rate Survey — SR50 Balanced (60–76) Index, periods to 31 January 2021. Returns from equivalent investment options of the ARF and STA super funds are used in calculating returns for periods that begin before 1 July 2006. Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns.
1. AustralianSuper data: 1987 – 2021 returns. Returns from equivalent investment options of the ARF and STA super funds are used in calculating returns for periods that begin before 1 July 2006.
* Returns as at 30 June 2021. Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns.
† SuperRatings Fund Crediting Rate Survey, SR50 Balanced (60-76) Index 30 June 2021. AustralianSuper returns for periods before 1 July 2006 are from equivalent investment options of the ARF and STA super funds.
at 30 June 2021.
§ Reader’s Digest Most Trusted Brands – Superannuation category winner for nine years running 2013-2021 according to research conducted by independent research agency Catalyst Research.
This information may be general financial advice which doesn’t take into account your personal objectives, situation or needs. Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement. AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.