Balanced option one of the top performing funds with 12.44% return
It’s been a strong financial year for members, with the AustralianSuper Balanced option returning 12.44% for the year to 30 June 2017.
The Balanced option delivered its eighth consecutive year of positive returns. For the three years to 30 June 2017, the Balanced option returned 9.23% pa against the median return of 7.58% pa.*
The Balanced option for retirement income accounts returned 13.60% for the year to 30 June 2017, against the median return of 11.23%.+
All other AustralianSuper investment options delivered positive results for the financial year.
Global economy grows despite political uncertainty
All asset classes produced positive returns for the financial year, with improving prospects for the global economy and company earnings lifting world share markets.
Deputy Chief Executive and Chief Investment Officer, Mark Delaney, said: ‘the return to above-average performance reflects the improving global economy, particularly in China and the US. Investment markets have also been resilient in the face of greater political uncertainty.’
Delivering a better net result for members
AustralianSuper works hard to maximise members’ returns through active management, keeping costs low and investing in a broad range of quality assets. Here’s how these three things delivered for members last financial year:
- Active management
This is where we select which countries, industries and investments we think will outperform the broader market. This approach has added to our strong performance against other funds. Our international shares portfolio performed particularly well, as did our infrastructure, property and private equity assets. We also kept a low weighting to the worst performers: government bonds and cash.
- Internal management
We use a mix of in-house and external fund managers to manage your super. We’ve been gradually increasing the amount of assets our in-house investment team manage, which is helping to lower costs and access better investments for members. Currently, our internal team manage around $26 billion, which is 22% of members’ assets.
- Quality assets
Ausgrid is a prime example of our internal management strategy in action. AustralianSuper and IFM Investors purchased a 50.4% stake in Ausgrid in December in one of Australia’s largest infrastructure deals ever. AustralianSuper members are now part-owners of Australia’s largest electricity network operator, which powers around 1.7 million homes and businesses across NSW.
Staying focused on the long term
While the annual results were pleasing, returns can fluctuate from year to year, which is why it’s important to focus on long-term returns.
‘The diversified nature of our Balanced option has allowed us to manage market ups and downs over the long term,’ Delaney said.
‘It’s the breadth of the asset classes that we invest in and our active management of these investments that helps create sustainable long-term returns for our members.’
Around 90% of AustralianSuper members invest in the Balanced option. It has returned 9.64% pa since its inception in August 1985 to 30 June 2017.
Want to know more?
Check out the performance of all our investment options.
Retirement income performance
+ SR50 Median Balanced Option, SuperRatings Fund Crediting Rate Survey, June 2017
+ SRP50 Median Balanced Option, SuperRatings Pension Fund Crediting Rate Survey, June 2017