AustralianSuper delivers ‘balanced’ returns
AustralianSuper’s members who have invested in the fund’s ‘Balanced’ option are reaping the rewards, with a statement revealing returns of 8.22 per cent for the 2023 financial year.
The announcement comes as the fund hit $300 billion in member assets under management (AUM) and is expected to reach over $500 billion in the next four to five years. In the last 12 months, the fund has already seen over $20 billion in annual net inflows of members’ retirement savings.
AustralianSuper’s Chief Investment Officer, Mark Delaney, said the fund managed to withstand ongoing economic difficulties and market volatility through a defensive position, as well as the strong-performing result.
“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,” he said.
“The recovery in returns has been driven by strong growth in equity markets globally, with the performance of the technology sector a key driver. 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.
“But as we look forward, we still believe there are significant challenges ahead in the global economy and have positioned the portfolio to respond to these and to take advantage of opportunities that will likely present themselves as we progress through the 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.”
Data from AustralianSuper shows that investing in the Balanced option for the past 20 years to 30 June 2023 would have more than quadrupled members’ retirement savings. The fund says over 90 per cent of members are currently invested in the Balanced option.
“There are challenges ahead in the higher interest rate environment and there are headwinds to economic growth, and while inflation is abating it still remains above central bank targets,” Delaney said.
“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.”
Is this the same so-called ‘balanced’ fund that not long ago held just 8% in cash and fixed interest?
Dear Financial Newswire,
Trying not to sound too inflammatory, I don’t quite understand the duality in the hypocrisy of your articles this morning.
You wrote one article titled ‘Unlisted investments create valuation challenges’ but then wrote the above article boasting about the 12-month results of the ‘Balanced’ option within AustralianSuper. You quote Mark Delaney; “to withstand ongoing economic difficulties and market volatility through a defensive position, as well as the strong-performing result,” yet AustralianSuper has 20% of its balanced portfolio in Unlisted Infrastructure/Property.
I can infer all readers would love to understand your logic with this morning’s articles.
Kind regards,
Juno
Good luck to the members in the fund 10 years from now when they write down the unlisted asset valuations or have to sell a few. The giant Ponzi scheme rolls on but for how long. People still believe that these guys have some sort of elevated skill for asset allocation over and above the guys running funds in retail land. We have a lot of Warren Buffetts in this country and they all somehow work for industry funds.
Australia has the most useless Unlisted Asset valuations of any major Superannuation sector globally.
Haven’t ISA absolutely rorted our useless valuation rules.
Along with utter lies of Asset Allocations with up to 94% Growth Assets as so called Balamced funds.
And given ASIC & APRA do nothing about it.
REGULATORY CAPTURE CORRUPTION AT ITS WORST.