POWERED BY MOMENTUM MEDIA
CFS credits equity allocations as ‘core drivers’ of FY23–24 returns
Colonial First State has reported its second consecutive year of double-digit returns for members of its MySuper balanced and growth funds.
The FirstChoice Employer Super balanced fund (MySuper Lifestage 1965–69) delivered a 12.1 per cent return for the financial year 2023–24, while the FirstChoice Employer Super growth fund (MySuper Lifestage 1975–79) delivered a 14.3 per cent return.
Jonathan Armitage, Colonial First State’s chief investment officer, said the strong investment performance has largely been driven by strong returns in global and domestic equities. Year to date, the S&P 500 is up almost 16.75 per cent and is up almost 25 per cent since June 2023.
“The strength of global sharemarkets has really been the core driver of investment returns over the last 12 months,” Armitage said.
Moreover, CFS, which holds nearly $150 billion in funds under administration, is in the “relatively unique” position of holding no legacy unlisted assets, he said.
“In an environment of higher interest rates, this has allowed us to deliver another year of solid returns for members,” Armitage said.
Looking into the new financial year, the investment executive said CFS continues to believe inflation data will be volatile, keeping interest rates higher for longer.
He also said this could create continued headwinds for some sectors like commercial real estate.
“Managing the evolving macro-economic environment will also be paramount over the coming year,” Armitage said.
Earlier this week, fellow retail fund AMP also credited a tactical overweight allocation to US equities towards its strong returns, returning 11.14 per cent for members of its AMP MySuper 1970s superannuation fund option, its largest by funds under management.
AMP MySuper 1980s and 1990s members, too, benefited from a high growth allocation, notching returns of 11.31 per cent for the financial year.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
Recommended for you
Australia’s corporate regulator has been told it must quickly modernise its oversight of private markets, after being caught off guard by the complexity, size, and opacity of the asset class now dominating institutional portfolios.
ASIC chair Joe Longo has delivered a blunt warning to superannuation trustees, cautioning that board-level ignorance of member complaints and internal failings will not be tolerated and could trigger enforcement action.
ART has cautioned regulators against imposing overlapping obligations on superannuation funds already operating under APRA’s comprehensive framework, saying that additional oversight should be “carefully targeted to address potential gaps in other parts of the market”.
The super fund has appointed Simone Van Veen as chief member officer.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
