Media releases Archives - Page 4 of 6

Media release: Lonsec Sustainable Managed Portfolios now available on BT Panorama

Lonsec’s suite of managed portfolios are now available on BT Panorama with the addition of the Sustainable portfolios. The Sustainable portfolios provide greater choice for clients seeking investment strategies that align with their personal values and demonstrate strong environmental, social and governance (ESG) practices.

Recognising the growing demand for responsible investment solutions, Lonsec developed the Sustainable portfolios’ Balanced, Growth and High Growth risk profiles with a unique philosophy that looks through both lenses of ESG, which focus on the underlying managers’ process, approach and integration of ESG factors, along with Sustainability measures, which focus on the funds’ positive impact on the world.

To measure the portfolios’ contribution to society and the environment, Lonsec assess funds against the UN’s Sustainable Development Goals (SDG) framework. In this assessment, Lonsec looks at the activities of the companies held in a fund and net the positive contributions to the 17 SDGs against the negative impact of exposures to controversial industries.

Deanne Baker, Portfolio Manager for the Sustainable portfolios said, ‘The Sustainable portfolios now have close to a 12-month track record and, not only have they outperformed the Benchmark over the last 6 and 9 months, but they have also made positive contributions across a number of the SDGs including SDG 11 Sustainable Cities and Communities, SDG 3 Good Health and Well Being and SDG 1 No Poverty. With the addition of our Sustainable portfolios on BT Panorama, we are thrilled to offer an investment solution that aligns with the goals of our clients in conjunction with having a positive impact on the planet”.

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For more information, contact:
Rob Hardy
Robert.Hardy@lonsec.com.au
1300 826 395

IMPORTANT NOTICE: This document is published by Lonsec Investment Solutions Pty Ltd ACN 608 837 583, a Corporate Authorised Representative (CAR 1236821) (LIS) of Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec Research). LIS creates the model portfolios it distributes using the investment research provided by Lonsec Research but LIS has not had any involvement in the investment research process for Lonsec Research. LIS and Lonsec Research are owned by Lonsec Holdings Pty Ltd ACN 151 235 406. Please read the following before making any investment decision about any financial product mentioned in this document.

DISCLOSURE AT THE DATE OF PUBLICATION: Lonsec Research receives a fee from the relevant fund manager or product issuer(s) for researching financial products (using objective criteria) which may be referred to in this document. Lonsec Research may also receive a fee from the fund manager or product issuer(s) for subscribing to research content and other Lonsec Research services. LIS receives a fee for providing the model portfolios to financial services organisations and professionals. LIS’ and Lonsec Research’s fees are not linked to the financial product rating(s) outcome or the inclusion of the financial product(s) in model portfolios. LIS and Lonsec Research and their representatives and/or their associates may hold any financial product(s) referred to in this document, but details of these holdings are not known to the Lonsec Research analyst(s).

WARNINGS: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to general advice and based solely on consideration of the investment merits of the financial product(s) alone, without taking into account the investment objectives, financial situation and particular needs (“financial circumstances”) of any particular person. Before making an investment decision based on the rating or advice, the reader must consider whether it is personally appropriate in light of his or her financial circumstances or should seek independent financial advice on its appropriateness. If the financial advice relates to the acquisition or possible acquisition of a particular financial product, the reader should obtain and consider the Investment Statement or the Product Disclosure Statement for each financial product before making any decision about whether to acquire the financial product.

DISCLAIMER: No representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented in this document, which is drawn from public information not verified by LIS. The information contained in this document is current as at the date of publication. Financial conclusions, ratings and advice are reasonably held at the time of publication but subject to change without notice. LIS assumes no obligation to update this document following publication. Except for any liability which cannot be excluded, LIS and Lonsec Research, their directors, officers, employees and agents disclaim all liability for any error or inaccuracy in, misstatement or omission from, this document or any loss or damage suffered by the reader or any other person as a consequence of relying upon it.

Copyright © 2021 Lonsec Investment Solutions Pty Ltd ACN 608 837 583 (LIS). This document may also contain third party supplied material that is subject to copyright. The same restrictions that apply to LIS copyrighted material, apply to such third-party content.

December 1, 2021/by Rob Hardy

Media releases

Media release: Lonsec significantly expands its distribution and client engagement team

Lonsec has made a number of key hires within its distribution and client engagement team, in order to provide more support to advisers and their practices.

John Burton has been appointed Head of Sales and is based in Lonsec’s Sydney Office. Previously National Sales Manager at OnePath, John was most recently Founder and Director of Clarity Wealth, a financial planning consultancy delivering a range of financial advice. John offers over 25 years’ experience in the industry.

Lonsec has also added two Transition Consultants. The newly created roles will assist practices transform their businesses through the efficient implementation of research and reporting solutions, as well as managed accounts. Brendan Tully has deep experience of the advice industry having worked at BT, Westpac and AMP over the past twenty years. Brendan is based in Adelaide. Sean Newman joins from Commonwealth Financial Planning and has over 25 years’ experience, including time with Mercer and Aon Wealth. Sean is based in Melbourne.

Head of Sales and Marketing at Lonsec, Rob Hardy, said ”These key additions to our team are genuinely seasoned professionals, with a deep understanding of the challenges faced by advisers and their practices. All were chosen for their in-depth knowledge of the provision of advice, and we look forward to helping drive genuine efficiencies and results for all of our clients.”

Further to these roles, the Sales team has been increased from four to six with the addition of dedicated staff for QLD and WA/SA. These new appointments are in addition to the four existing positions in Sydney and Melbourne.

Recently appointed CEO, Mike Wright, said “Lonsec is continuing to build out its Research, Consulting and Managed Account capabilities, including expanded coverage across platforms. With inflows for many months now, well in excess of $100M p.m. it was clear that we needed to expand our team and capabilities, in order to support the growing number of clients”.

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For more information, please contact:

Rob Hardy
Rob.Hardy@lonsec.com.au

November 29, 2021/by Rob Hardy

Lonsec Retirement Perspectives, Media releases, News & Insights

Accessing Advice Helps Drive Better Retirement Lifestyle

With half the country in what seems never ending rounds of lockdowns and pandemic fatigue setting in, one of the last things most Australians want to do is look at their Superannuation balances and investment options. That is, however, exactly what SuperRatings is wanting us to do, as neglecting your super or responding to short term market moves can have a detrimental effect on your super balance.

SuperRatings Executive Director Kirby Rappell says, ‘We looked at the impact of switching out of a balanced or growth option and into cash at the start of the pandemic and found that those with a balance of $100,000 in January 2020 and who switched to cash at the end of March would now be around $22-27,000 worse off than if they had not switched.’

This effect of switching into cash as a response to market turmoil is also seen when looking at returns over the past 15 years. In this period, a typical balanced Super option has risen substantially, with a balance of $100,000 in July 2006 accumulating to $247,557, more than doubling in size. Those members investing in a growth option have experienced an even stronger result, with a similar starting balance growing to $254,006. Share focused options have delivered the highest returns, with the median Australian shares option growing to $276,099 and the median international shares option growing to $271,051, though these types of options involve greater risks. Over the same period, a $100,000 balance invested in cash would only be worth $151,158 today.

When considering your Super options, you don’t need to go it alone as many Super funds provide advice and tools to their members. Says Mr Rappell, ‘Most funds will offer scaled advice for free or at a low cost, with members able to get advice on topics such as contributions, investment options, insurance in the fund and the transition to retirement.’ Scaled advice is general in nature so you will need to check if your situation and goals align with the advice.
Continues Mr Rappell, ‘For members who want more tailored advice, some funds will offer comprehensive advice that will also take into account your financial assets outside of superannuation.’ While there will be a cost associated with this comprehensive advice, most funds will allow the cost of the advice to be deducted from the superannuation account, just make sure you check any costs and how they can be paid before agreeing to get the advice.
Looking at more recent returns, balances continued to grow in July. The typical balanced option returned an estimated 1.3% over the month and 18.5% over the year. The typical growth option returned an estimated 1.3% for the month and the median capital stable option also increased 0.9% in the month.

Accumulation returns to July 2021

	FYTD	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	1.3%	18.5%	7.9%	8.4%	8.0%	8.6%
SR50 Capital Stable (20-40) Index	0.9%	7.8%	4.5%	4.5%	4.8%	5.3%
SR50 Growth (77-90) Index	1.3%	22.7%	9.2%	9.5%	8.9%	9.6%

Source: SuperRatings estimates

Pension returns were also positive in July. The median balanced pension option returned an estimated 1.3% over the month and 20.0% over the year. The median pension growth option returned an estimated 1.5% and the median capital stable option also rose an estimated 0.9% in the month.

Pension returns to July 2021

	FYTD	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SRP50 Balanced (60-76) Index	1.3%	20.0%	8.4%	9.1%	8.5%	9.5%
SRP50 Capital Stable (20-40) Index	0.9%	8.6%	5.2%	5.2%	5.2%	5.9%
SRP50 Growth (77-90) Index	1.5%	24.4%	9.7%	10.3%	9.8%	10.6%

Source: SuperRatings estimates

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Warnings: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to “General Advice” (as defined in the Corporations Act 2001(Cth)) and based solely on consideration of the merits of the superannuation or pension financial product(s) alone, without taking into account the objectives, financial situation or particular needs (‘financial circumstances’) of any particular person. Before making an investment decision based on the rating(s) or advice, the reader must consider whether it is personally appropriate in light of his or her financial circumstances, or should seek independent financial advice on its appropriateness. If SuperRatings advice relates to the acquisition or possible acquisition of particular financial product(s), the reader should obtain and consider the Product Disclosure Statement for each superannuation or pension financial product before making any decision about whether to acquire a financial product. SuperRatings research process relies upon the participation of the superannuation fund or product issuer(s). Should the superannuation fund or product issuer(s) no longer be an active participant in SuperRatings research process, SuperRatings reserves the right to withdraw the rating and document at any time and discontinue future coverage of the superannuation and pension financial product(s).

Copyright © 2021 SuperRatings Pty Ltd (ABN 95 100 192 283 AFSL No. 311880 (SuperRatings)). This media release is subject to the copyright of SuperRatings. Except for the temporary copy held in a computer’s cache and a single permanent copy for your personal reference or other than as permitted under the Copyright Act 1968 (Cth.), no part of this media release may, in any form or by any means (electronic, mechanical, micro-copying, photocopying, recording or otherwise), be reproduced, stored or transmitted without the prior written permission of SuperRatings. This media release may also contain third party supplied material that is subject to copyright. Any such material is the intellectual property of that third party or its content providers. The same restrictions applying above to SuperRatings copyrighted material, applies to such third party content.

August 20, 2021/by Nicci Chaplin

Media releases

Ambitious targets for the new Lonsec CEO

Lonsec has welcomed key senior appointments with Mike Wright joining as CEO and Kevin Brennan as Chief Information Officer (CIO). These appointments follow the recent renewal of the Lonsec board.

Mike has over 25 years’ experience in leading businesses and teams within Financial Services and joined from Xplore Wealth Ltd (ASX: XPL.AX), where he was CEO and successfully led the friendly takeover to Hub24 (ASX: HUB.AX), a leading independent investment platform.

Mike has set himself an ambitious challenge for his first 100 days with the business, meeting with all 100+ employees, key partners and clients and says, ‘At a time when the financial services industry is going through so much change, it is incredibly exciting and reassuring to join a company like Lonsec that is so committed to supporting Advisers and Funds through industry changes.’

Mike joins at a dynamic time for Lonsec, with the Lonsec Managed Accounts hitting $2bn funds under management in July 2021 (up from $1bn FUM in October 2020), as well as being fittingly placed to support Advisers and their clients focus on sustainable and ethical investment strategies.

Lonsec has been at the forefront of supporting increased investor appetite for sustainable and ethical investments that also provide a solid return. In response, they developed the Lonsec Sustainable Managed Accounts to provide greater choice for clients seeking investment strategies that align with their personal values and demonstrate strong environmental, social and governance (ESG) practices.
Unique in the market, Lonsec Sustainable Managed Accounts combines both ESG, which focus on the underlying manager’s process to ESG factors and Sustainability measures, which focuses on the funds positive impact on the world.

The Lonsec Sustainable Managed Accounts have just been added to the Macquarie Wrap Platform and are also available on Hub24 and Netwealth.

Lonsec is also fulfilling its thought leadership mandate by launching a Sustainability program to continue to educate investors. Lonsec’s Head of Sustainability, Tony Adams says ‘With the Lonsec Sustainability program, we want to help financial advisers and their clients take a sustainable approach to investing by sharing insights and research powered by Lonsec and a range of industry leaders.’ Via webinars and articles, the Lonsec Sustainability program has recently covered subjects such as ‘greenwashing’ and how Advisers can start sustainable investing conversations with their clients. This is a partner program to the long running Lonsec Retire program, now in its ninth year.

Kevin Brennan is excited to be joining Lonsec as Chief Information Officer. Kevin brings more than 20 years’ experience running large technology teams in the wealth industry. His key focus will be to elevate the role of technology within Lonsec and drive a comprehensive technology and data strategy to transform its service architecture and further accelerate business growth.

Mike concludes, ‘We are so fortunate to be in a strong position to continue to honourably help Advisers, Managers and investors with insights and solutions to help them navigate the immense challenges that many of them face and share in common.’

RELEASE ENDS

For more information, contact:

Rob Hardy
Robert.Hardy@lonsec.com.au
1300 826 395

August 19, 2021/by Nicci Chaplin

Insights, Media releases

Media release: Stellar FY21 returns as super funds deliver for their members

The 2021 financial year saw a rapid recovery from the economic downturn, followed by ongoing growth as confidence soared on the back of the development of COVID-19 vaccines. This led to the hope of a return to a more normal lifestyle, with superannuation funds riding the market highs to deliver some of the best returns members have seen since superannuation was introduced.

With super funds finalising their reporting for June 2021, the strength of the market rebound is clear. The top 20 performing balanced options all returned over 18% to their members over the year, a result that nobody would have predicted 12 months ago.

According to data from leading research house SuperRatings, QANTAS Super Gateway – Growth was the top performing fund over the 2021 financial year, returning 22.0%. This was followed by BT Panorama Full Menu – BT Wholesale Multi-manager and Hostplus whose balanced options returned 21.4% and 21.3% respectively.

Top 20 balanced options over 12 months

Source: SuperRatings

While extraordinary performance over the last 12 months is to be acknowledged, long-term returns are what really count. Here is where members can see which funds have consistently delivered quality returns.

The top performers over ten years were AustralianSuper, whose balanced option has returned 9.73% p.a. over the last decade, followed closely by Hostplus – Balanced and Cbus – Growth (Cbus MySuper) returning 9.67% and 9.6% respectively.

Top 20 balanced options over 10 years

Source: SuperRatings

COVID-19 introduces market downturns to the next generation of investors

Before the impact of the COVID-19 pandemic, the globe had seen the longest run of growth in its history. As a result, the market crash in February 2020 would have been the first time younger investors experienced such a significant and sharp fall in their wealth. Increasingly, investors are acknowledging the importance of not only the return that an option delivers but also the level of risk it takes on to achieve that return.

One way to examine this is looking at the ups and downs in returns over time. Growth assets like shares may return more on average than traditionally defensive assets like fixed income, but this comes with a bumpier ride.

The table below shows the top 20 funds ranked according to their volatility-adjusted return, which measures how much members are being rewarded for taking on the ups and downs.

QSuper’s balanced option return of 8.1% p.a. over the past seven years is below some of its peers, but it has achieved this with a smoother ride along the way, meaning it has delivered the best return given the level of volatility involved.

Top 20 balanced options over 7 years ranked by risk and return

Option Name	Risk Ranking	7 Yr Return (p.a.)
QSuper – Balanced	1	8.1%
BUSSQ Premium Choice – Balanced Growth	2	8.5%
Prime Super – MySuper	3	8.7%
CareSuper – Balanced	4	8.7%
Cbus – Growth (Cbus MySuper)	5	9.2%
Spirit Super – Balanced (MySuper)	6	8.7%
Catholic Super – Balanced Growth (MySuper)	7	8.4%
Aware Super – Growth	8	8.6%
VicSuper FutureSaver – Growth (MySuper) Option	9	8.6%
AustralianSuper – Balanced	10	9.6%
Mercy Super – MySuper Balanced	11	8.3%
CSC PSSap – MySuper Balanced	12	8.0%
Media Super – Balanced	13	8.3%
Sunsuper for Life – Balanced	14	8.9%
Hostplus – Balanced	15	9.5%
NGS Super – Diversified (MySuper)	16	8.1%
Vision SS – Balanced Growth	17	8.8%
HESTA – Balanced Growth	18	8.5%
Active Super – Balanced Growth	19	8.0%
Equip MyFuture – Balanced Growth	20	8.5%

Source: SuperRatings

Sustainable options keep pace with the market recovery

Sustainable investments are becoming increasingly appealing to a broad range of investors, as the impacts of businesses on people and places becomes more widely accepted.

While a relatively recent addition to many funds’ portfolios, long-term returns remain crucial when looking at sustainable options. The table below shows the top 10 sustainable balanced options ranked according to their 5 year return.

SuperRatings data shows that HESTA’s Sustainable Growth option provided the highest return to members over 5 years for a dedicated sustainable option, with a return of 11.8%. This was 1.2% more than the highest balanced option return over the same period. This was followed by the UniSuper Accum (1) – Sustainable Balanced and VicSuper FutureSaver – Socially Conscious options which returned 10.2% and 9.8% respectively.

Top 10 sustainable balanced options over 5 years

Source: SuperRatings

“Overall, returns for the 12 months to June 2021 should provide everyday Australians with confidence that super funds have capitalised on the market recovery, while also performing well during the sell-off in March 2020”, said SuperRatings Executive Director Kirby Rappell.

Mr Rappell continued “while we saw funds that had a high exposure to equity markets fall dramatically when the pandemic first hit markets in February, these were the same funds that then rebounded strongly as markets recovered.

In saying that, it has been the year of domestic and global shares and listed property as key drivers of performance.”

The funds that have performed well on a 10 year basis followed a range of approaches. We have seen funds pursuing alternatives continue to perform well, although we expect to see a greater emphasis on asset allocation in coming years as funds look to drive down costs over the long term.

Mr Rappell commented, “a really interesting trend has been the evolution of funds’ sustainable options. In the past, the average sustainable option’s return tended to lag the standard balanced option. However, in more recent times, these options have performed well with the top performing options surpassing their typical balanced style counterparts in some cases.”

The key message here for funds and members is to take the time to think about your long-term strategy. The recent pandemic has reinforced the importance of setting up your super in the best way, to ensure you are on track for your retirement. Volatility will come and go, but having a long-term strategy is what will give you the comfort and confidence to ride it out.

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Warnings: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to “General Advice” (as defined in the Corporations Act 2001(Cth)) and based solely on consideration of the merits of the superannuation or pension financial product(s) alone, without taking into account the objectives, financial situation or particular needs (‘financial circumstances’) of any particular person. Before making an investment decision based on the rating(s) or advice, the reader must consider whether it is personally appropriate in light of his or her financial circumstances, or should seek independent financial advice on its appropriateness. If SuperRatings advice relates to the acquisition or possible acquisition of particular financial product(s), the reader should obtain and consider the Product Disclosure Statement for each superannuation or pension financial product before making any decision about whether to acquire a financial product. SuperRatings research process relies upon the participation of the superannuation fund or product issuer(s). Should the superannuation fund or product issuer(s) no longer be an active participant in SuperRatings research process, SuperRatings reserves the right to withdraw the rating and document at any time and discontinue future coverage of the superannuation and pension financial product(s).

Copyright © 2021 SuperRatings Pty Ltd (ABN 95 100 192 283 AFSL No. 311880 (SuperRatings)). This media release is subject to the copyright of SuperRatings. Except for the temporary copy held in a computer’s cache and a single permanent copy for your personal reference or other than as permitted under the Copyright Act 1968 (Cth.), no part of this media release may, in any form or by any means (electronic, mechanical, micro-copying, photocopying, recording or otherwise), be reproduced, stored or transmitted without the prior written permission of SuperRatings. This media release may also contain third party supplied material that is subject to copyright. Any such material is the intellectual property of that third party or its content providers. The same restrictions applying above to SuperRatings copyrighted material, applies to such third party content.

July 21, 2021/by Kirby Rappell

Media releases, News & Insights

Lonsec Sustainable Managed Accounts added to Netwealth

We are very happy to advise that Netwealth has added Lonsec’s Sustainable Managed Accounts to their menus. The Lonsec Sustainable Managed Accounts complement our existing range of managed accounts available on Netwealth – Lonsec Listed Managed Accounts, Lonsec Retirement Managed Accounts and Lonsec Multi Asset Managed Accounts.

We are a proven partner in Portfolio Construction with over 20 years of experience and expertise that has seen Advisers and their clients through multiple market cycles and conditions.

The Lonsec Sustainable Managed Accounts have a unique philosophy that looks through both lenses of ESG, which focus on the underlying managers’ take around Ethical, Sustainable & Governance metrics, along with Sustainability measures, which focus on how to demonstrate the goodness of the included funds. We also take into account the United Nations’ 17 Sustainable Development Goals when choosing funds for inclusion in the managed accounts. Coupled with our proven investment philosophy of both SAA & DAA considerations and proven downside market risk mitigation, this makes a compelling offer in a market where investors are becoming more and more ethically focused.

The Lonsec Sustainable Managed Accounts are the only actively managed, risk diversified and multisector portfolio with a highly qualitative focus on sustainability measures of its class.

A spokesperson for Lonsec said ‘Over the past five years we have seen increased investor appetite for sustainable and ethical investments that also provide a solid return. Our suite of managed accounts has doubled their FUM over the past 12 months and we are happy to partner with Netwealth to bring this unique product to more Advisers and investors.’

The Lonsec Sustainable Managed Accounts joins our suite of managed accounts available on Netwealth including:

Lonsec Listed Managed Accounts – Portfolios built on the 20-year proven Lonsec investment philosophy, incorporating an active approach while using passive style assets to achieve a lower overall cost for investors
Lonsec Retirement Managed Accounts – Diversified, actively managed portfolios for income seekers with a proven yield objective of +4%
Lonsec Multi Asset Managed Accounts – Portfolios built across multiple asset types allowing best of idea execution while also delivering the most diverse and risk-controlled outcomes for investors

July 1, 2021/by Dylan Pike

Media releases, News & Insights

Media release: Lonsec appoints new CEO

The Lonsec Board of Directors is very pleased to announce the appointment of Mike Wright as CEO of Lonsec effective 5th July 2021.

Lonsec Chairman Mark Spiers said, “Mike’s unique blend of leading teams to develop and implement client-oriented growth and service initiatives along with his strong industry relationships and knowledge were exactly the leadership attributes that we were seeking.”

“By continuing to stay close to our clients Lonsec has enjoyed significant growth across all its business units and I am excited to be able to work with the great team at Lonsec to continue to build on this,” said Mike.

Mike was most recently the CEO of Xplore Wealth, an ASX listed company specialising in providing managed account investment solutions to financial advisers. Xplore Wealth was successfully acquired by Hub24 via a Scheme of Arrangement, completed 2nd March 2021.

Prior to this, Mike had a long and successful career in the Westpac/BT Group, where he held senior executive roles with Westpac’s Retail & Business Banking, and was State General Manager of Queensland before leading the Advice business at BT.

Release ends

For more information, contact:

Rob Hardy
robert.hardy@lonsec.com.au
+61 2 8651 6744

May 12, 2021/by Rob Hardy

Media releases

Media Release: Super funds record slow but steady start to 2021

While not as strong out of the gates as members had hoped, January’s result nevertheless marked the tenth consecutive month of gains for super funds as members continue to claw back their losses since the start of the pandemic a year ago.

According to SuperRatings data, the median balanced option and median growth option both returned an estimated 0.4% in January, while the median capital stable option was flat at 0.1%. Over the 2021 financial year to date, the median balanced option returned 9.1%, reflecting the strength and speed of the recovery in the second half of 2020.

As Victoria endures a snap five-day lockdown and other state governments increase testing and tracing efforts in the face of the new ‘UK variant’ of the COVID-19 virus, markets are still exposed to potential downside risk. Despite good news on the vaccine front, it will take time for vaccines to be distributed nation-wide to every demographic. Until then, members should be ready for a bumpy ride in 2021.

“Super funds have had a promising start to 2021, but the pandemic isn’t over yet,” said SuperRatings Executive Director Kirby Rappell.

“Movements in financial markets are still closely tied to how governments are managing new COVID-19 cases, as well as the timing and efficacy of vaccines. In short, we expect more ups and downs in the market, and super funds are not immune.”

Accumulation returns to end of January 2021

	FYTD	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a)
SR50 Growth (77-90) Index	10.8%	1.7%	6.5%	8.8%	8.1%	8.2%
SR50 Balanced (60-76) Index	9.1%	1.8%	5.9%	7.7%	7.2%	7.6%
SR50 Capital Stable (20-40) Index	4.2%	1.1%	3.7%	4.6%	4.6%	4.9%

Source: SuperRatings estimates

Pension returns were also slight but positive in January. The median balanced pension option returned an estimated 0.3% in January and 9.9% over the financial year to date. The median pension growth option returned an estimated 0.4% and the median capital stable option returned an estimated 0.1% through the month.

Pension returns to end of January 2021

	FYTD	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a)
SRP50 Growth (77-90) Index	11.9%	2.0%	7.1%	9.7%	9.0%	9.1%
SRP50 Balanced (60-76) Index	9.9%	1.8%	6.5%	8.5%	8.1%	8.4%
SRP50 Capital Stable (20-40) Index	4.7%	1.4%	4.3%	5.2%	5.1%	5.7%

Source: SuperRatings estimates

The pandemic still looms large across the global economic landscape, with over 100 million confirmed COVID-19 cases worldwide at the start of February. The gradual rollout of vaccines is offering hope that we can achieve a new normal despite early logistical roadblocks and shortages in some regions.

Meanwhile Australia’s recovery continues and has been most evident in the labour market, which continues to outperform expectations. The unemployment rate fell from 6.8% to 6.6% in December with 50,000 jobs added over the month. While lockdowns will likely continue to be used as a policy tool, they will hopefully be shorter and more targeted.

According to SuperRatings, super funds are in good health and well positioned for 2021 despite the challenges.

“One thing that was reinforced in 2020 is that Australia’s superannuation system is built to withstand market storms and even pandemics,” said Mr Rappell.

“Overall funds are focused on the risks and opportunities that lie ahead. To date, they have shown the ability to manage their investment positions and provide the additional support that many members need in this environment.”

Release ends

Warnings: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to “General Advice” (as defined in the Corporations Act 2001(Cth)) and based solely on consideration of the merits of the superannuation or pension financial product(s) alone, without taking into account the objectives, financial situation or particular needs (‘financial circumstances’) of any particular person. Before making an investment decision based on the rating(s) or advice, the reader must consider whether it is personally appropriate in light of his or her financial circumstances, or should seek independent financial advice on its appropriateness. If SuperRatings advice relates to the acquisition or possible acquisition of particular financial product(s), the reader should obtain and consider the Product Disclosure Statement for each superannuation or pension financial product before making any decision about whether to acquire a financial product. SuperRatings research process relies upon the participation of the superannuation fund or product issuer(s). Should the superannuation fund or product issuer(s) no longer be an active participant in SuperRatings research process, SuperRatings reserves the right to withdraw the rating and document at any time and discontinue future coverage of the superannuation and pension financial product(s).

Copyright © 2021 SuperRatings Pty Ltd (ABN 95 100 192 283 AFSL No. 311880 (SuperRatings)). This media release is subject to the copyright of SuperRatings. Except for the temporary copy held in a computer’s cache and a single permanent copy for your personal reference or other than as permitted under the Copyright Act 1968 (Cth.), no part of this media release may, in any form or by any means (electronic, mechanical, micro-copying, photocopying, recording or otherwise), be reproduced, stored or transmitted without the prior written permission of SuperRatings. This media release may also contain third party supplied material that is subject to copyright. Any such material is the intellectual property of that third party or its content providers. The same restrictions applying above to SuperRatings copyrighted material, applies to such third party content.

February 16, 2021/by Kirby Rappell

Media releases

Media release: The top returning super funds of 2020

In a year defined by the global pandemic and the locking down of economies, the superannuation system faced arguably one of its toughest test in its 29-year history.

Now, as super funds finalise their reporting for December 2020, the strength of superannuation’s comeback is clear. Despite the market turmoil in the first half of the year, Australia’s top super funds have posted some remarkable results.

Long-term returns have also held up well, evidenced by the 10-year performance rankings, demonstrating the quality of funds available to members.

According to data from leading research house SuperRatings, Suncorp was the top performing fund over the 2020 calendar year, with the Suncorp Brighter Super Pers – Suncorp Multi-Manager Growth Fund returning 9.6%. This was followed by Australian Ethical and Vision SS, whose balanced options returned 8.0% and 6.2% respectively.

Top 20 balanced options over 12 months

Source: SuperRatings

Moving out to 10 years, the top performers were UniSuper, whose balanced option has returned 9.0% p.a. over the last decade, followed closely by AustralianSuper and Cbus.

Top 20 balanced options over 10 years

Source: SuperRatings

Spotlight on risk and return in wake of COVID-19

It is important to consider not only the return that an option delivers but also the level of risk it takes on to achieve that return. A rough way to examine this is the variability in returns over time. Growth assets like shares may return more on average than traditionally defensive assets like fixed income, but this comes with larger ups and downs.

The table below shows the top 20 funds ranked according to their volatility-adjusted return, which measures how much members are being rewarded for taking on the ups and downs.

QSuper’s balanced option return of 7.9% p.a. over the past seven years is below some of its peers, but it has done this with a smoother ride along the way, meaning it has delivered the best return given the level of volatility involved.

Top 20 balanced options over 7 years ranked by risk and return

Option name	Rolling 7-year return (% p.a.)
QSuper – Balanced	7.9%
BUSSQ Premium Choice – Balanced Growth	7.8%
Prime Super – MySuper	7.9%
Cbus – Growth (Cbus MySuper)	8.5%
CareSuper – Balanced	7.9%
MTAA Super – My AutoSuper	8.0%
Catholic Super – Balanced (MySuper)	7.7%
VicSuper FutureSaver – Growth (MySuper) Option	8.0%
Mercy Super – MySuper Balanced	7.7%
AustralianSuper – Balanced	8.8%
Aware Super (previously First State Super) – Growth	7.8%
Media Super – Balanced	7.6%
CSC PSSap – MySuper Balanced	7.1%
Sunsuper for Life – Balanced	8.0%
Hostplus – Balanced	8.4%
Vision SS – Balanced Growth	7.9%
HESTA – Balanced Growth	7.7%
Club Plus Super – MySuper	7.3%
Equip MyFuture – Balanced Growth	7.7%
Local Government Super Accum – Balanced Growth	7.3%

Source: SuperRatings

“What the calendar year figures hide is the rollercoaster movements members experienced as the market sold off back in March 2020 and then rapidly recovered,” said SuperRatings Executive Director Kirby Rappell.

“As members accumulate wealth over time, market movements will have a bigger impact on their account balance in dollar terms. This is a challenge for funds and members as the average super balance rises over $100,000, with the need for education and support paramount.”

While it is important to acknowledge those funds that have outperformed over 2020, members should bear in mind that long-term performance is what really counts.

“Overall, funds have done an excellent job of managing risks through a tumultuous period,” said Mr Rappell. “Super is a long-term game, so it’s pleasing to see long-term returns remain healthy and ahead of their CPI+ targets.”

Release ends

Warnings: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to “General Advice” (as defined in the Corporations Act 2001(Cth)) and based solely on consideration of the merits of the superannuation or pension financial product(s) alone, without taking into account the objectives, financial situation or particular needs (‘financial circumstances’) of any particular person. Before making an investment decision based on the rating(s) or advice, the reader must consider whether it is personally appropriate in light of his or her financial circumstances, or should seek independent financial advice on its appropriateness. If SuperRatings advice relates to the acquisition or possible acquisition of particular financial product(s), the reader should obtain and consider the Product Disclosure Statement for each superannuation or pension financial product before making any decision about whether to acquire a financial product. SuperRatings research process relies upon the participation of the superannuation fund or product issuer(s). Should the superannuation fund or product issuer(s) no longer be an active participant in SuperRatings research process, SuperRatings reserves the right to withdraw the rating and document at any time and discontinue future coverage of the superannuation and pension financial product(s).

Copyright © 2021 SuperRatings Pty Ltd (ABN 95 100 192 283 AFSL No. 311880 (SuperRatings)). This media release is subject to the copyright of SuperRatings. Except for the temporary copy held in a computer’s cache and a single permanent copy for your personal reference or other than as permitted under the Copyright Act 1968 (Cth.), no part of this media release may, in any form or by any means (electronic, mechanical, micro-copying, photocopying, recording or otherwise), be reproduced, stored or transmitted without the prior written permission of SuperRatings. This media release may also contain third party supplied material that is subject to copyright. Any such material is the intellectual property of that third party or its content providers. The same restrictions applying above to SuperRatings copyrighted material, applies to such third party content.

January 21, 2021/by Kirby Rappell

Media releases

Media release: Super funds supporting V-shaped recovery

November was the strongest month for superannuation in 2020 and the 8th consecutive month of positive returns for members.

As COVID-19 restrictions ease nation-wide and investors look forward to the approval and distribution of a vaccine, share markets globally have pushed to record highs, delivering windfall gains for super members.

According to estimates from leading superannuation research house SuperRatings, the median balanced option returned 4.9% in November as members enjoyed an early Christmas gift that has put them back into the black over the course of a volatile and uncertain year.

Since the start of 2020 the median balanced option has delivered 2.3% and is on track to finish the year in positive territory. Super has bounced back strongly in the second half of the year, returning 7.5% from the start of July to the end of November, reversing the large falls back in February and March.

According to SuperRatings data, the median growth option returned an estimated 6.2% in November and 2.4% over the calendar year, while the median capital stable option returned an estimated 2.0% in November and 1.7% over the calendar year.

“We’ve had a watershed month for super and hopefully this strong performance can continue through to the new year,” said SuperRatings Executive Director Kirby Rappell.

“Given the world is battling a pandemic that has resulted in large sections of the economy being placed in lockdown, the results are remarkable. This is the year super proved its worth once again and reminded us why it is so critical to our economic success.”

Accumulation returns to end of November 2020

	CYTD	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a)
SR50 Growth (77-90) Index	2.4%	2.4%	6.6%	7.9%	8.0%	8.4%
SR50 Balanced (60-76) Index	2.3%	2.2%	5.8%	7.1%	7.3%	7.9%
SR50 Capital Stable (20-40) Index	1.7%	1.5%	3.8%	4.3%	4.6%	5.1%

Source: SuperRatings estimates

Pension returns had a similarly strong month. The median balanced pension option rose an estimated 5.4% in November and 2.6% over the calendar year. The median pension growth option rose an estimated 6.8% in November and 2.6% over the calendar year, and the median capital stable pension option returned an estimated 2.3% in November and 2.0% over the calendar year.

Pension returns to end of November 2020

	CYTD	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a)
SRP50 Growth (77-90) Index	2.6%	2.6%	7.3%	8.7%	8.9%	9.3%
SRP50 Balanced (60-76) Index	2.6%	2.4%	6.6%	7.8%	7.9%	8.5%
SRP50 Capital Stable (20-40) Index	2.0%	1.7%	4.4%	5.0%	5.2%	5.9%

Source: SuperRatings estimates

The global recovery is underway and is looking sufficiently V-shaped, but recent economic news has been mixed. Infection rates have risen in the US and Europe, causing a loss of momentum, but news of successful vaccine trials have boosted confidence.

The UK has begun rolling out the Pfizer-BioNTech vaccine, while Australia and the US are preparing to do the same once the vaccine is approved. Meanwhile, China has ramped up its trade conflict with Australia, putting tariffs of up to 200% on Australian wine and suspending the importation of Australian beef, barley and timber.

“Australia’s success in containing the coronavirus has put us in an enviable position, but there are still significant risks at play. The pandemic is not yet defeated and there are geopolitical issues weighing on the outlook. Members should be optimistic but prepare themselves for potential surprises as we head into 2021.”

Release ends

Warnings: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to “General Advice” (as defined in the Corporations Act 2001(Cth)) and based solely on consideration of the merits of the superannuation or pension financial product(s) alone, without taking into account the objectives, financial situation or particular needs (‘financial circumstances’) of any particular person. Before making an investment decision based on the rating(s) or advice, the reader must consider whether it is personally appropriate in light of his or her financial circumstances, or should seek independent financial advice on its appropriateness. If SuperRatings advice relates to the acquisition or possible acquisition of particular financial product(s), the reader should obtain and consider the Product Disclosure Statement for each superannuation or pension financial product before making any decision about whether to acquire a financial product. SuperRatings research process relies upon the participation of the superannuation fund or product issuer(s). Should the superannuation fund or product issuer(s) no longer be an active participant in SuperRatings research process, SuperRatings reserves the right to withdraw the rating and document at any time and discontinue future coverage of the superannuation and pension financial product(s).

Copyright © 2020 SuperRatings Pty Ltd (ABN 95 100 192 283 AFSL No. 311880 (SuperRatings)). This media release is subject to the copyright of SuperRatings. Except for the temporary copy held in a computer’s cache and a single permanent copy for your personal reference or other than as permitted under the Copyright Act 1968 (Cth.), no part of this media release may, in any form or by any means (electronic, mechanical, micro-copying, photocopying, recording or otherwise), be reproduced, stored or transmitted without the prior written permission of SuperRatings. This media release may also contain third party supplied material that is subject to copyright. Any such material is the intellectual property of that third party or its content providers. The same restrictions applying above to SuperRatings copyrighted material, applies to such third party content.

December 16, 2020/by Kirby Rappell