How did Australia’s largest super funds perform in FY22–23?

6 July 2023
| By Laura Dew |
expand image

AustralianSuper and Australian Retirement Trust (ART) have posted their financial results for the 2022–23 financial year. 

ART, which has 2.2 million members and over $240 billion in assets under management, saw returns of 10 per cent in its Super Savings Balanced portfolio. 

Head of investment strategy, Andrew Fisher, said the financial results have exceeded the fund’s expectations and are up from returns of 9 per cent in the previous financial year, despite the challenging environment.

“The result has exceeded our expectations at the start of the year, in the context of challenging conditions, it is an excellent result. We didn’t make much change during the year, there’s always positive incremental change and new investments and we always have a lot of cash inflows coming in that we can use to reposition the fund and adapt to what’s happening in markets,” Fisher said.

Over at AustralianSuper, Australia’s largest fund with $300 billion in assets under management, the fund saw a slightly smaller return than ART with the Balanced option of the fund returning 8.2 per cent. 

Over 90 per cent of AustralianSuper’s 3.1 million members are invested in this option.

However, the performance was a notable uptick from FY21–22 performance when the fund experienced losses of 2.7 per cent, only the fourth time in 36 years that the Balanced option had experienced a negative return.  

Mark Delaney, chief investment officer at AustralianSuper, said: “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.

“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.”

Both Fisher and Delaney noted property holdings has had an impact on the fund during the year with the two funds having to write down property assets. 

The office sector, in particular, experienced material downward adjustments due to capital market disruption, the move to staff working from home, and occupancy declines.

Fisher said: “It’s been challenging for office properties thanks to higher interest rates, higher inflation plus the obvious structural drivers in terms of working from home. The last six months we have seen that have implications in terms of transactions and rental vacancies are creeping up which has combined to see valuations come back a bit.”

“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,” Delaney commented.

Earlier this year, Delaney stated unlisted property assets, which are managed internally, have been detrimental to the fund’s performance.

“We had a strategy of overweight on retail and a strategy of more international property than Australian. Both of them were the wrong decision and with property, it’s very hard to get out of. Retail got disintermediated by online shopping and we were overweight there then we had a short exposure to industrial so that was the worst of all worlds,” Delaney said.

Read more about:


Submitted by Proplannerone on Thu, 2023-07-06 08:50

Amazing how the Aus super return jumped in June due to them “revaluing “ assets . The revalue them up to suit their desired return profile . Smoke and mirrors

Who cares ? As long as they don't reject or block a withdrawal, I'm sure clients don't care about the valuation process they use.

The people in the fund will care a lot of someone else redeems off a false high valution of an unlisted asset. Not good to be the last to redeem your money from a Ponzi scheme.

Submitted by Chris Cornish on Thu, 2023-07-06 11:22

And teh former Chair of AMP now sits comfortably on the board of the Scentre Group and on their Audit and Risk committee.

Submitted by Tomas Fahey on Sat, 2023-07-08 16:19

Interesting Where did CBus fare

Submitted by Ninh Tran on Sat, 2023-07-08 17:28

Thanks for your excellent information about ART last year performance & I am is one of their members.

Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you



sub-bg sidebar subscription

Never miss the latest news and developments in wealth management industry

Justice crew

No surprises here!...

23 hours 18 minutes ago

I keep reading with dispair about the twist and turns happening in the industry Previous and current governments are li...

1 day 22 hours ago
Golden Oldie

Thankfully, we're not contributing towards their Dixon incompetence, because they're funding that (from all taxpayers), ...

2 days ago

AustralianSuper and Australian Retirement Trust have posted the financial results for the 2022–23 financial year for their combined 5.3 million members....

8 months 2 weeks ago

A $34 billion fund has come out on top with a 13.3 per cent return in the last 12 months, beating out mega funds like Australian Retirement Trust and Aware Super. ...

8 months ago

The verdict in the class action case against AMP Financial Planning has been delivered in the Federal Court by Justice Moshinsky....

8 months 2 weeks ago