How much did Australia's largest super fund return in FY23–24?

australian super superannuation funds financial returns

3 July 2024
| By Rhea Nath |
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AustralianSuper has reported a “solid” return of 8.46 per cent  from its balanced option for the financial year 2024, bolstered by strong performances from share markets.

More than 90 per cent of its members are invested in this option.

Meanwhile, its retirement option, Choice Income, saw an annual return of 9.25 per cent in the balanced option.
Mark Delaney, AustralianSuper chief investment officer, said it was a “pleasing” result all round for the fund.

“Despite market volatility driven largely by geopolitical tensions and a complicated economic landscape, AustralianSuper has delivered solid returns to members to help them achieve their best financial position in retirement,” he said, noting the fund’s balanced option has delivered 8.07 per cent over 10 years and 8.72 per cent over 15 years to June 2024.

In particular, Delaney credited international and Australian share markets as the main drivers, especially in the midst of a tech-rally this year.

“Equities have done well due to strong earnings growth from technology companies in the US and strong consumer spending in Australia and overseas, which helped to drive up company earnings,” he said.

The executive noted another contributing factor was easing inflation levels “that boosted investor confidence, which in turn, lifted markets to higher levels”.

AustralianSuper’s return, while still above its goal of achieving CPI plus 4 per cent over the long term, falls behind a number of its peers that announced results this week, such as HESTA’s 9.1 per cent for its MySuper Balanced Growth default option, and Australian Retirement Trust’s 9.9 per cent for its balanced option.

According to SuperRatings, the median balanced option is poised to return 8.8 per cent in the year to June 2024, with funds holding higher investments to tech shares likely to do well.

Commenting on the results, AustralianSuper CIO Delaney reminded members of the benefits of a diversified portfolio and that the focus should always be on long-term returns.

“Our investment strategy continues to focus on balancing potential growth opportunities with diversification to deliver positive returns for members and stability across market cycles,” he said.

“We are strongly focused on assets that will grow balances over time.”

 

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Submitted by Goblin on Wed, 2024-07-03 18:57

AustralianSuper, the largest superannuation fund in the country continues to have a one-size-fits all default option. It seems to be such a lazy way to invest members' money, especially younger workers who are missing out by having such a large allocation to defensive assets when they would have been so much better off being 100% invested in growth assets.

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