Russell Investments’ MySuper option returns up to 12.3%

Russell Investments’ GoalTracker MySuper option has delivered its accumulation members a return between 9.2 per cent and 12.3 per cent depending on age for the financial year ending 30 June.

Investing members’ super and selecting diversified portfolio allocations best suited to their age, those aged 50 and under saw returns at the higher end of the spectrum, while members nearing retirement age or aged 60 and above received returns at the lower end of the spectrum.

The GoalTracker MySuper has delivered average annualised returns between 8.3 per cent (for 60 and above) and 11.3 per cent (for 50 and under) since its inception in March 2020. The option is split into a further nine options for those aged in their 50s, returning between 9.51 per cent to 11.98 per cent for the year ending 30 June and 8.6 per cent and 11.0 per cent since inception.

“Our strong investment performance is helping to grow the super savings for more than 80,000 working Australians across the country. It also reinforces the commitment of the fund to manage investments through members’ life stages, giving them the best chance at a great life after work,” Tim Furlan, Head of Australia and New Zealand at Russell Investments, said.

“The two biggest factors that can limit members’ super savings is not taking on enough investment risk while they’re younger and then conversely not adequately derisking as they approach retirement.

“Our default GoalTracker option addresses those factors by investing based on the members’ age. They also have the option to get an even more personalised strategy by adding further details like their super balance, income, expected retirement age and income goal, and more.”

The option for younger members takes a heavier approach to long-term growth, allocating to a higher proportion of growth assets in these portfolios. As members creep towards retirement age, the focus shifts towards a larger proportion of defensive assets to protect against unwanted risk.

“The aim of the GoalTracker option is to take acceptable levels of risk when appropriate through the asset allocations we set for members. We actively manage our actual exposures relative to those asset allocations, based on the outlook for both growth and defensive assets,” Daniel Choo, Senior Portfolio Manager at Russell Investments, said.

“Despite a risk of recession, our strategy was to stick to our strategic asset allocations, and this paid off as markets continued to rise over the year. This decision was based on our Cycle, Valuation and Sentiment investment process.

“This year’s performance reflects the importance of balancing investment opportunities when markets are fearful and knowing when to dial down as markets become overexuberant. We continue to focus on achieving the best possible return for our members to reach their personal goals and financial security in retirement.”