The $300 billion AustralianSuper fund has announced a strong annual result with the Balanced investment option returning 8.2 per cent for the FY23.
The Balanced option of Australia’s largest super fund has returned an average of 8.23 per cent a year over three years, 6.72 per cent a year over five years, and 8.6 per cent a year over 10 years.
Over 90 per cent of AustralianSuper’s 3.1 million members are invested in this option.
“The rebound in investment performance this financial year is an important reminder to look past short-term investment returns and focus on consistent long-term performance,” said Mark Delaney, AustralianSuper CIO.
The returns followed a defensive position by the fund, which prepared for ongoing global economic challenges and key unlisted asset write-downs.
“The recovery in returns has been driven by strong growth in equity markets globally, with the performance of the technology sector a key driver,” Delaney noted.
“Overall, investment market returns have been better than we expected and economic growth has proved relatively resilient with consumer spending holding up well over the year.”
Now standing at some $300 billion in member assets under management, AustralianSuper is estimated to reach more than $500 billion in the next four or five years.
It welcomes some 1,200 new members a day and has seen over $20 billion in annual net inflows in the past 12 months.
Looking ahead, Delaney foresees continued challenges in the global economy and said AustralianSuper has positioned the portfolio to respond to, and take advantage of, opportunities that arise through this cycle.
“Over the year, we have also responded to a variety of significant investment challenges, including write-downs in some property assets to account for falling values,” he added.
He reiterates, however, that members should continue to focus on long-term performance over year-on-year results.
“Our overall outlook suggests that we will continue to see weaker economic growth, continued volatility in investment markets, and moderate returns over the next few years. This will benefit patient investors like AustralianSuper who can invest across the long-term economic cycle,” Delaney said.
The fund recently announced a new deputy CIO, Damian Moloney, who has been directly responsible for the build-out of AustralianSuper’s US and European offices for the last five years. He would continue to hold these responsibilities alongside the new role.
It has around half of its around $300 billion invested outside Australia, with around $85 billion invested in the US and almost $40 billion invested in the UK and Europe.
Funny thihg is with a fluffy piece like this – it ignores a very important issue – as all the players from the ISN “conveniently do.
the measurement of performance comes with essentially two components. The return and @ what risk. Issues such as standard deviation, Sharpe ratio and Value @ risk considerations. To suggest otherwise is borderline disingenuous – The headline makes no mention of these components – and for such an erstwhile publication as super review to jump on board with marketing – really doesn’t help the unsuspecting. You might as well be making a two-way bet at the races.