CFS attributes strong MySuper returns to disciplined volatility management

CFS has credited its investment team’s disciplined approach to managing volatility as a key factor in delivering strong returns for MySuper members. 

Colonial First State (CFS) announced on Monday its FirstChoice Employer Super balanced fund (MySuper Lifestage 1965–69) delivered a 13.8 per cent return, while the FirstChoice Employer Super growth fund (MySuper Lifestage 1975–79) delivered a 16.6 per cent return in the 2024 calendar year.

Colonial First State’s chief investment officer, Jonathan Armitage, credited the CFS investment team’s disciplined approach to managing volatility as a key factor in delivering strong returns for its MySuper members.

“Delivering double digit returns is particularly pleasing given 2024 was a volatile period in investment markets due to significant geopolitical events including ongoing conflicts and elections in key global markets. Our MySuper members benefited from the very strong returns from global equities as well as robust performance from Australian shares,” said Armitage.

“Achieving such strong performance against this backdrop reflects the experience and capability of our investment team.”

Looking ahead, the investment executive said CFS continues to believe inflation data will be volatile.

“We believe that inflation data will continue to be volatile in 2025 so diversification and active risk management will be critical components of portfolio construction in the year ahead,” Armitage said.

CFS highlighted that the Australian Financial Complaints Authority ranked it as the top super fund for customer service, with the lowest complaint levels among Australia’s 20 largest funds.

Last year, Colonial First State Super said it is ready to support further consolidation in the super industry.

In a statement to Super Review in October, Clive van Horen, CEO of Colonial First State, confirmed the fund’s growth strategy is targeting sub-scale super funds that may struggle to meet rising regulatory and member expectations.

“Our focus is on those funds with members that would benefit from CFS’s scale, strong investment performance and low fees,” said van Horen.  

“Any merger opportunities will need to complement our existing strategy and deliver material benefits for members. This is not just a superannuation opportunity, we are also very well positioned across the wider investment platform market which provides additional opportunities for growth.”