CFS delivers strong returns for members in 2023

Yasmine Raso

Senior Journalist

8 February 2024

Members of Colonial First State’s (CFS’) MySuper balanced and growth products have been rewarded with above-median, double-digit returns after fees for the 2023 calendar year.

The highest returns were seen by members of the Thrive+ sustainable growth fund at 15.1 per cent, followed by the FirstChoice Employer Super growth fund (MySuper Lifestage 1975 to 1979) at 13.2 per cent.

The CSF Enhanced Index growth fund delivered 12.5 per cent in returns, while the FirstChoice Employer Super growth fund (MySuper Lifestage 1965 to 1969) delivered 11.8 per cent and the CFS Enhanced Index balanced funds returned 11.6 per cent for members.

According to CFS, reports by Super Ratings and Chant West place the fund in the top performing super funds of 2023.

“We are delighted to have delivered double digit returns for our members. These results have seen CFS outperform median returns across the industry,” Kelly Power, Chief Executive Officer of Colonial First State Superannuation, said.

“Our strong returns are especially pleasing given our continued focus on maintaining highly competitive fees and delivering value for our members.”

Jonathan Armitage, Chief Investment Officer at Colonial First State, said a strong performance in global and Australian equities contributed to the above-median returns.

“Delivering double digit returns is a good outcome given the significant market uncertainty in 2023. Good equity market returns and a higher allocation to global shares were among the drivers of this result,” he said.

“We believe that inflation data will continue to be volatile in 2024 so diversification and active risk management will be critical components of portfolio construction in the year ahead.  We continue to see valuation discrepancies across unlisted assets and will be looking to capitalise on those opportunities.

“Over the past year we have been focused on bringing industry-leading expertise to expand our capabilities in areas such as active risk and portfolio management. This is driving good investment outcomes for our members which we expect to continue in the year ahead.

“With respect to Thrive+, we have been especially pleased to see its strong performance over the last twelve months, demonstrating that a sustainable growth fund can deliver compelling returns for investors while also making a positive contribution to the environment.”