Media releases Archives - Lonsec Retire

Media release: Super funds feel modest headwinds during August

After a positive start to the new financial year, super fund returns faced modest headwinds in August with the median balanced option delivering an estimated return of -0.1% according to leading superannuation research house SuperRatings.

The trajectory for inflation remains a key driver for markets with uncertainty around central bank’s rates pathway remaining front of mind. Both Australian and global equities reported small declines over the month with diversification continuing to benefit members in reducing underperformance.

The median growth option fell by an estimated -0.3%, while lower exposure to shares resulted in the median capital stable option delivering a small positive result, with an increase of 0.1% for August.

Accumulation returns to August 2023

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	-0.1%	7.7%	7.1%	5.7%	6.6%	7.2%
SR50 Capital Stable (20-40) Index	0.1%	4.2%	3.0%	3.1%	3.6%	4.5%
SR50 Growth (77-90) Index	-0.3%	9.3%	8.5%	6.6%	8.1%	8.4%

Source: SuperRatings estimates

Pension returns followed a similar trend over the month, with the median balanced pension option falling an estimated -0.1%. The median growth option is estimated to decline -0.2% in August while the more defensive median capital stable pension option is estimated to deliver a 0.1% gain.

Pension returns to August 2023

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	-0.1%	8.7%	7.7%	6.3%	7.5%	7.9%
SR50 Capital Stable (20-40) Index	0.1%	4.7%	3.4%	3.4%	4.1%	4.9%
SR50 Growth (77-90) Index	-0.2%	9.8%	9.1%	7.4%	8.9%	9.2%

Source: SuperRatings estimates

“Market uncertainty persists, and we continue to expect monthly fund returns to bounce around” commented Executive Director of SuperRatings, Kirby Rappell, “However, over the long term, we know funds have a strong record of performing above objectives. The key message for most members is ensuring their settings are right for the long term in order to provide dignity in retirement.”

Monitoring investment performance is a good hygiene factor for members and the results of the latest annual performance test were recently released. The test has had a significant impact on MySuper default products over the past three years with the only MySuper product to fail the test this year already being closed to new members. The test was also expanded to a broader range of products this year and members who are invested in a failing product will soon be receiving a letter from their fund. If you do receive that letter, make sure you review your investment option or speak with a trusted adviser to understand why it failed and if it’s still suitable for you.

“We’ve seen a more subdued return for super funds over August, however the strong returns in July mean performance remains positive overall for the new financial year. We encourage members to focus on the longer term and be prepared to see more ups and downs over the coming months” concluded Mr Rappell.

Release ends

We welcome media enquiries regarding our research or information held in our database. We are also able to provide commentary and customised tables or charts for your use.

For more information contact:

Kirby Rappell
Executive Director
Tel: 1300 826 395
Mob: +61 408 250 725
Kirby.Rappell@superratings.com.au

September 12, 2023/by Kirby Rappell

Media releases

Media Release: Shares drive 2023 return as super delivers through uncertain times

With superannuation funds finalising their returns to 30 June 2023, it is clear that super has delivered a competitive outcome during uncertain times. This is particularly pleasing following the -3.4% loss reported a year ago. Share markets rebounded strongly over the year with international shares driving fund returns, albeit well supported by Australian shares.

All Balanced funds, those with between 60% to 76% of their portfolio invested in growth assets, are expected to deliver positive returns to members, while the top 10 funds provided members with returns of over 9.5% for the financial year and members in several of the best performers will be receiving double digit returns. ESSSuper was the top performing Balanced fund for the year ending June 2023 returning 13.3% for its Balanced Growth option, which was renamed from Basic Growth on the 1st of July 2023. This was followed by Vision Super’s Balanced Growth option and Brighter Super’s Balanced Option with returns of 11.0% and 10.6% respectively.

Daniel Selioutine, ESSSuper’s Group Executive, Investments commented: “Performance over the last 12 months has been a welcome result for our members and follows a multi-year program of reorienting the portfolio towards areas of competitive advantage. Our shorter term performance is explained by our positioning in equities and bonds, however our dedicated investment team remains firmly focussed on delivering longer-term investment outcomes to members.”

Top 10 Balanced Options over 12 months

As at 30 June 2023

Rank	Option Name	1 Year %	10 Year % pa
1	ESSSuper Accum – Basic Growth	13.3	–
2	Vision SS – Balanced Growth	11.0	8.1
3	Brighter Super Accum – Balanced	10.6	7.3
4	UniSuper Accum (1) – Balanced	10.3	8.4
5	Equip MyFuture – Balanced Growth	10.1	7.8
6	Australian Retirement Trust – Super Savings – Balanced	10.0	8.4
7	IOOF Employer Super Core – IOOF MultiSeries 70	9.8	7.2
8	Aware Super Future Saver – Balanced	9.7	7.9
9	Mercer Super Trust – Mercer Select Growth	9.6	–
10	HESTA – Balanced Growth	9.6	8.0
	SR50 Balanced (60-76) Index	9.0	7.5

Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. *Based on primary Balanced option by FUM within SR50 Balanced Index.

The table above displays the performance of the top performing balanced funds for the year to 30 June 2023, as well as showing 10-year returns which is an important consideration given the long-term nature of superannuation investments.

The second half of the financial year provided the majority of gains for funds, led by a rally in international shares. A key theme for returns in 2023 was that funds with higher exposure to shares generally outperformed for the year, while those with greater exposure to unlisted property and alternatives reported more subdued outcomes. As a result, members who were invested in index funds generally did quite well, given the strong focus on listed shares in these options.

Top 5 Passive Balanced Options over 12 months

As at 30 June 2023

Rank	Option Name	1 Year %	10 Year % pa
1	HESTA – Indexed Balanced Growth	12.5	–
2	Rest – Balanced Indexed	12.4	–
3	Hostplus – Indexed Balanced	12.3	7.9
4	Brighter Super – Indexed Balanced	11.7	–
5	AustralianSuper – Indexed Diversified	11.6	7.2

Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. *Based on passive options with SAA of 60-76% growth assets tracked by SuperRatings.

The top performing indexed fund was HESTA’s Indexed Balanced Growth option with a return of 12.5% for the year to June. While this sits slightly lower than the top performing balanced option, over the past 12 months, balanced index options have tended to outperform their more actively managed equivalents.

Top 5 Sustainable Balanced Options over 12 months

As at 30 June 2023

Rank	Option Name	1 Year %	10 Year % pa
1	Raiz Super – Emerald (SRI)	13.3	–
2	Super SA Triple S – Socially Responsible*	12.1	7.3
3	UniSuper Accum (1) – Sustainable Balanced	11.0	8.2
4	Aware Super Future Saver – Balanced Socially Conscious	10.9	8.4
5	Future Super – Balanced Index	10.5	–

*This option is tax exempt for members
Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. *Based on SR Sustainable Balanced Survey for options with SAA of 60-76% growth assets tracked by SuperRatings.

Investments with a sustainable focus have also outperformed over the year with Raiz Super’s Emerald investment option matching the top performing balanced option with a return of 13.3%.

“As we see funds offering members a range of investment options, it is worthwhile to note we are seeing different options perform well in different market conditions” commented Executive Director of SuperRatings, Kirby Rappell. “However, members should remember that superannuation is a long-term investment, and most of these options are still relatively new in superannuation terms. While short term trends may be topical, longer term trends are our primary focus as we want to see which funds have performed well over the long term and their alignment with their member’s outcomes.”

Hostplus’ Balanced option remained the highest performing balanced option over 10 years returning of 8.9% p.a. with the top 10 performers over ten years to June listed in the table below:

Top 10 Balanced Options over 10 years

As at 30 June 2023

Rank	Option Name	1 Year %	10 Year % pa
1	Hostplus – Balanced	8.0	8.9
2	AustralianSuper – Balanced	8.2	8.6
3	Australian Retirement Trust – Super Savings – Balanced	10.0	8.4
4	UniSuper – Balanced	10.3	8.4
5	Cbus – Growth (MySuper)	9.0	8.3
6	Vision Super – Balanced Growth	11.0	8.1
7	CareSuper – Balanced	9.1	8.0
8	HESTA – Balanced Growth	9.6	8.0
9	Aware Super Future Saver – Balanced	9.7	7.9
10	Spirit Super – Balanced (MySuper)	9.2	7.8
	SR50 Balanced (60-76) Index	9.0	7.5

Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. *Based on SR50 Balanced Index options with SAA of 60-76% growth assets tracked by SuperRatings.

“We observed funds reviewing and writing down their unlisted asset valuations at the end of the financial year, contributing to the moderately weaker annual performance of funds with significant exposure to these assets in FY23; however, over the long term, they have added value to member outcomes, with many of the top performing options over 10 years having exposure to alternative assets” continued Mr Rappell. “Superannuation continues to deliver for members over the long term with annual returns of 7.1% since compulsory superannuation began in 1992.”

Expect more ups and downs in FY24

While funds benefited from strong performance in shares over the second half of the year, FY23 continued the trend of increased fluctuation in member account balances with 5 out of the 12 months in the year having negative performance. Members who are still some distance from retiring can afford to ride-out these ups and downs as these will be a distant memory by the time they retire, but for members nearing, or in, retirement minimising these fluctuations can be a key factor in their retirement planning.

“Since the onset of the COVID-19 pandemic, managing volatility has really come back into focus for funds after almost a decade of steady gains. The sharp rise in inflation and global uncertainty has been a constant over the past couple of years and we expect this to persist.” said Mr Rappell.

The table below shows the top 10 funds ranked according to their volatility-adjusted return, which measures how much members are being rewarded for taking on the ups and downs in their balances.

CareSuper, which was the winner of the SuperRatings Smooth Ride award in 2022, for being able to manage the ups and downs, sits at the top of the table with its Balanced option return of 7.5% p.a. over the past 7 years. This was closely followed by Australian Retirement Trust’s Super Savings Balanced option with a return of 8.3% pa.

Top 10 Funds Based on Volatility-Adjusted Performance with 7 Year Return Shown

As at 30 June 2023

Rank	Option Name	Rolling 7 Year %
1	CareSuper – Balanced	7.5
2	Australian Retirement Trust – Super Savings – Balanced	8.3
3	Hostplus – Balanced	8.6
4	Qantas Super – Growth	7.8
5	Aware Super Future Saver – Balanced	7.7
6	Cbus – Growth (MySuper)	7.6
7	AustralianSuper – Balanced	8.1
8	HESTA – Balanced Growth	7.7
9	Vision Super – Balanced Growth	8.0
10	IOOF Employer Super – MultiMix Balanced Growth Trust	7.2

Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. *Based on SR50 Balanced Index with SAA of 60-76% growth assets tracked by SuperRatings.

Suzanne Branton, Chief Investment Officer at CareSuper commented, “Through its history CareSuper’s investment approach has delivered high long term returns with lower risk. High returns are important, but we also care for our members by protecting their savings when markets are volatile and uncertain. We are pleased to consistently rank amongst the highest risk-adjusted returns, that’s our goal. Many think members don’t recognise risk-adjusted returns, but we know members understand when the environment becomes difficult – they can see the cost of living and mortgage rates are much higher. Given the complex outlook, we expect our dual purpose will be valued by members in times to come.”

As another financial year ends and funds begin to prepare annual statements, it’s a great time to review your superannuation settings. Regularly engaging with your superannuation will be time well spent when you see the potential impact on your retirement balance. Common things to check include if the investment option you’re in is suitable for your current stage of life and risk appetite, your current insurance cover and importantly, that all your contact details are up to date. Funds often offer simple risk profiling tools on their website to help with investment decisions and checking on your details has never been easier with most funds offering multiple channels to do so, such as by phone, online portals and even dedicated mobile apps.

If you are thinking of making a change, there are also multiple services that can help. SuperRatings has over 450 product ratings available on our website and funds themselves may offer access to advice services on a range of topics including investments, insurance, consolidation and retirement planning either directly or through associated adviser networks. Contact your fund to see what advice services are available but note there may be a cost for doing so. Make sure you check how much advice will cost and how you can pay for it before going ahead to ensure it’s right for you. Alternatively, you may wish to discuss your super with a trusted financial adviser to help understand whether your current super settings are appropriate for your personal situation. The Government also provides a comparison tool via the ATO website and information on how to select a financial adviser through the MoneySmart website.

Release ends

We welcome media enquiries regarding our research or information held in our database. We are also able to provide commentary and customised tables or charts for your use.

For more information contact:

Kirby Rappell
Executive Director
Tel: 1300 826 395
Mob: +61 408 250 725
Kirby.Rappell@superratings.com.au

Require further information? Simply visit www.superratings.com.au

July 17, 2023/by Kirby Rappell

Lonsec Retirement Perspectives, Media releases

Media release: Super funds end out financial year with strong June returns

Equity markets remained strong over June with the superannuation industry closing out the year with returns that more than made up for last year’s losses. Leading superannuation research house SuperRatings estimates that the median balanced option returned 1.2% over the month of June, strengthening an already positive annual return to 8.5% for the year to 30 June 2023. This follows on from the -3.4% return last financial year, demonstrating the industry’s ongoing ability to navigate an uncertain market environment.

Executive Director of SuperRatings, Kirby Rappell said, “While there are significant conversations about interest rate rises, inflation and global uncertainty front and centre within the economy, it is reassuring to see superannuation funds’ ability to deliver a competitive outcome for everyday Australians.”

Mr Rappell continued “While economic pressures are hard to ignore, superannuation continues to perform well on a long-term basis with most funds managing to keep performance in line with the typical CPI+3.0% investment objective over 10 and 30 years. We expect funds may struggle to meet their inflation plus objectives over the short term, particularly as inflation remains elevated; however, super funds have done well to capitalise on the opportunities available to ensure members’ super account balances continue to grow. While the current cost of living is certainly putting pressure on many Australians, superannuation continues to play its part for people’s longer term financial outcomes.”

The median growth option returned an estimated 1.4% over the month, while capital stable options which hold more traditionally defensive assets such as cash and bonds returned 0.3%.

Accumulation returns to June 2023

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	1.2%	8.5%	7.4%	5.7%	6.8%	7.4%
SR50 Capital Stable (20-40) Index	0.3%	4.5%	3.1%	3.1%	3.7%	4.5%
SR50 Growth (77-90) Index	1.4%	11.1%	9.0%	6.8%	8.2%	8.7%

Source: SuperRatings estimates

Pension returns also ended the financial year strongly, with the median balanced pension option up an estimated 1.3% over June. The median growth option rose by 1.6% while the median capital stable option is estimated to deliver a 0.3% return for the month.

Pension returns to June 2023

	Monthly	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%	9.8%	8.2%	6.4%	7.7%	8.3%
SR50 Capital Stable (20-40) Index	0.3%	5.1%	3.7%	3.5%	4.2%	5.1%
SR50 Growth (77-90) Index	1.6%	12.2%	9.6%	7.5%	9.2%	9.4%

Source: SuperRatings estimates

Super Performance Continues to Exceed Targets

The chart below shows that the average annual return since the inception of the superannuation system is 7.1%, with the typical balanced fund exceeding its long-term return objective of CPI+3.0%.

This year international equities were the standout performers for super funds, with Australian equities and listed property also supporting the strong performance over the year. Unlisted assets, such as unlisted property, have placed a bit of a drag on returns, with a significant number of funds writing down unlisted valuations. These assets have performed well over the long term and provided crucial diversification within portfolios. More defensive options had a tougher year with smaller allocations to equities and a relatively subdued return from fixed interest, however cash options did provide a small silver lining as returns rose off the back of central bank rate rises.

We continue to emphasise the importance of setting a long-term strategy for your superannuation. Despite the strong performance over the past year, we suggest members remain alert, but not alarmed, and review their longer-term settings, such as whether they are in the most appropriate investment option for their situation and check their fees, when they check their annual statements.

Mr Rappell commented, “12 months ago, we did not anticipate an 8% return for this year and so, many people would see this as a positive. Further, long term returns remaining strong. However, we expect the ups and downs observed over the last 12 months to continue and members should be prepared for their balances to fluctuate. If you are not approaching or in retirement, keep in mind that all market movements in the short term are not likely to be what you are thinking about when you retire in 20 or 30 years time.”

Release ends

We welcome media enquiries regarding our research or information held in our database. We are also able to provide commentary and customised tables or charts for your use.

For more information contact:

Kirby Rappell
Executive Director
Tel: 1300 826 395
Mob: +61 408 250 725
Kirby.Rappell@superratings.com.au

July 6, 2023/by Kirby Rappell

Lonsec Retirement Perspectives, Media releases

Media release: Super fund performance remains strong despite market uncertainty

Stubbornly high inflation and a return to tightening monetary policy by the Reserve Bank of Australia has led to persistent uncertainty in markets over the past year. Superannuation fund returns are expected to be slightly negative over the month, with leading superannuation research house SuperRatings estimating the median balanced option generated a return of -0.2% for May. Despite the uncertain outlook for inflation, we estimate financial year to date returns on a Balanced (60-76) option to be 7.9% as at the end of May. Depending on returns throughout June, super funds are on track to manage a return above inflation for the past 12 months.

The median growth option fell by an estimated -0.3% over May, while the median capital stable option is estimated to decline by -0.2%.

Accumulation returns to May 2023

	Monthly	FYTD	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	-0.2%	7.9%	4.0%	7.4%	5.9%	6.6%	7.3%
SR50 Capital Stable (20-40) Index	-0.2%	4.4%	2.6%	3.2%	3.2%	3.7%	4.5%
SR50 Growth (77-90) Index	-0.3%	9.6%	5.0%	9.1%	6.8%	7.7%	8.5%

Source: SuperRatings estimates

Pension returns saw a similar fall over May with the median balanced pension option estimated to decline by -0.3%. The median growth pension option is also estimated to fall by -0.3%, while the median capital stable pension option fell by an estimated ‑0.2% over the month.

Pension returns to May 2023

	Monthly	FYTD	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	-0.3%	8.6%	4.7%	8.0%	6.4%	7.5%	8.0%
SR50 Capital Stable (20-40) Index	-0.2%	4.9%	3.2%	3.7%	3.5%	4.1%	4.9%
SR50 Growth (77-90) Index	-0.3%	10.6%	5.5%	9.7%	7.6%	8.6%	9.2%

Source: SuperRatings estimates

Executive Director of SuperRatings Kirby Rappell commented, “While May saw a small fall, funds are currently on track to deliver a return in excess of inflation, so funds have kept the value of members money from diminishing in a high inflation environment, which has been no simple task.”

In dollar terms, members with $100,000 invested in the Balanced option at the start of July last year would have an estimated $107,833 in their account at the end of May, not accounting for administration fees or any insurance premiums they may pay. Members investing in the more defensive Capital Stable option would have an estimated $104,677 with smaller ups and downs throughout the year, while members that limited their investments to Cash would have a lower overall balance of $102,358 while seeing small gains each month. This demonstrates that fund’s investment strategies are behaving as expected by trading off between account growth and a smooth return, even in such uncertain times.

“Inflation, and the central bank response to inflation, have been the most influential factors for superannuation performance this financial year and we expect this to continue into FY24. Super fund returns have had a bumpy year with markets facing several shocks over the last 11 months; however, funds continue to navigate the challenges well with most accounts seeing growth over the course of the full year”, Mr Rappell continued.

Release ends

We welcome media enquiries regarding our research or information held in our database. We are also able to provide commentary and customised tables or charts for your use.

For more information contact:

Kirby Rappell
Executive Director
Tel: 1300 826 395
Mob: +61 408 250 725
Kirby.Rappell@superratings.com.au

June 9, 2023/by Kirby Rappell

Lonsec Retirement Perspectives, Media releases

Media release: Super performance stays strong in April

Markets continued their upward trajectory in April with leading superannuation research house SuperRatings estimating the median balanced option generated a return of 1.2% for the month, driven by continued momentum in Australian and global equities. However, inflation continues to sit well above central bank targets and the Reserve Bank of Australia defied expectations by increasing rates by another 25 basis points in their May meeting, again highlighting the ongoing challenge posed by inflation.

As we head towards the end of the financial year, funds look to be on track to deliver strong absolute returns with an estimated 8.1% return for a Balanced (60-76) option over the financial year to date.

The median growth option rose by an estimated 1.4% over April, while the median capital stable option rose by an estimated 0.7%.

Accumulation returns to April 2023

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	1.2%	3.2%	8.3%	6.0%	7.0%	7.4%
SR50 Capital Stable (20-40) Index	0.7%	2.2%	3.7%	3.3%	4.0%	4.5%
SR50 Growth (77-90) Index	1.4%	3.6%	9.9%	7.0%	8.1%	8.6%

Source: SuperRatings estimates

Pension returns also improved over April with the median balanced pension option rising an estimated 1.3%. Similarly, the median growth pension option is estimated to rise by 1.6%, while the median capital stable pension option gained an estimated 0.7% over the month.

Pension returns to April 2023

	Monthly	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%	3.4%	9.1%	6.5%	7.7%	8.0%
SR50 Capital Stable (20-40) Index	0.7%	2.3%	4.2%	3.6%	4.4%	4.9%
SR50 Growth (77-90) Index	1.6%	4.4%	11.0%	7.8%	9.0%	9.3%

Source: SuperRatings estimates

“The strong financial year to date return will be welcome news for members after last year’s losses as well as some bumpy months at the start of this financial year. However, these returns and latest inflation figures demonstrate the challenge facing super funds, the economy and everyday Australians. Inflation for the year to March sat at 7%. Most funds over the longer term are targeting a return of inflation plus 3% per annum for their members invested in the balanced option. Put simply, super funds are on track to return around 8% thus far this financial year, despite this also being behind an objective of inflation plus 3%. What it reinforces is that super remains a long term game and that returns are holding up pretty well, despite the challenges that funds and their members are facing to adapt to a higher inflation environment.”, commented Executive Director of SuperRatings, Kirby Rappell.

“We expect to see continuing volatility in returns, despite the strength with which volatility has been navigated to date. Setting long term strategy remains the best approach to long term success. While fund performance may struggle to significantly outpace inflation in the current environment, over the long term they continue to perform well.”

Release ends

We welcome media enquiries regarding our research or information held in our database. We are also able to provide commentary and customised tables or charts for your use.

For more information contact:

Kirby Rappell
Executive Director
Tel: 1300 826 395
Mob: +61 408 250 725
Kirby.Rappell@superratings.com.au

May 9, 2023/by Kirby Rappell

Lonsec Retirement Perspectives, Media releases

Media release: Markets close out March quarter on a positive

While inflation indicators continue to be closely watched, markets recorded a positive return March following the slight fall in February, closing the first three months of 2023 on a positive note. Leading superannuation research house SuperRatings estimates that the median balanced option generated a return of 0.9% for March and 3.4% for the first three months of the year.

While the Reserve Bank paused their increases to the cash rate in April after 10 consecutive increases, significant uncertainty remains over the direction of the federal funds rate. While markets may anticipate a pause; there has been no pause in volatility as half of the previous 8 months returns were negative, with this remaining the outlook for the remainder of the financial year.

The median growth option also rose by an estimated 0.9% over March, while the median capital stable option rose by an estimated 1.0%.

Accumulation returns to March 2023

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	0.9%	0.6%	8.9%	6.1%	6.9%	7.4%
SR50 Capital Stable (20-40) Index	1.0%	0.9%	3.9%	3.3%	3.9%	4.5%
SR50 Growth (77-90) Index	0.9%	0.6%	10.9%	7.2%	8.0%	8.7%

Source: SuperRatings estimates

Pension returns also rose over January, with the median balanced pension option up an estimated 3.5%. While an increase of 3.9% was estimated for the median growth option and a more modest 2.0% for the median capital stable pension option.

Pension returns to March 2023

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	1.1%	0.4%	9.9%	6.6%	7.7%	8.1%
SR50 Capital Stable (20-40) Index	1.2%	1.0%	4.5%	3.7%	4.4%	4.9%
SR50 Growth (77-90) Index	0.9%	0.2%	11.8%	7.9%	8.9%	9.4%

Source: SuperRatings estimates

“Super funds continue to demonstrate their ability to capture upside benefits for members when they are available in the market while managing for market volatility through diversification. As we edge closer to the end of the financial year the outlook feels slightly more stable, although there is still a chance that annual returns could drop back into negative territory depending on the final quarter of the financial year.”, commented Executive Director of SuperRatings, Kirby Rappell.

“While there has been significant ups and downs over each month in the year so far, superannuation remains a long term investment for most and these shifts have a much smaller impact when considering 10 year performance. Funds are well equipped to navigate changing markets with 10 year performance estimated to be 7.4% and demonstrating resilience to date” Mr Rappell added.

Release ends

We welcome media enquiries regarding our research or information held in our database. We are also able to provide commentary and customised tables or charts for your use.

For more information contact:

Kirby Rappell
Executive Director
Tel: 1300 826 395
Mob: +61 408 250 725
Kirby.Rappell@superratings.com.au

April 13, 2023/by Joshua Lowen

Lonsec Retirement Perspectives, Media releases

Media Release: Market rally gives super funds a positive start to 2023

Leading superannuation research house SuperRatings estimates that the median balanced option generated a return of 3.0% in January, which will be welcome news for members following a disappointing 2022 calendar year.

The continued upward trajectory in interest rates remains a key challenge for the return outlook, with increasing rates either signalling economic resilience or inflationary threats expanding. The positive return pushed estimated financial year to date returns to 6.0% with five months left in the year, which demonstrates the resilience of super during the market volatility that has been experienced.

The median growth option increased by an estimated 3.4% in January, while the median capital stable option delivered a 1.8% return to members.

Accumulation returns to January 2023

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	3.0%	0.0%	4.3%	5.8%	7.1%	7.6%
SR50 Capital Stable (20-40) Index	1.8%	-0.4%	1.8%	3.2%	4.0%	4.6%
SR50 Growth (77-90) Index	3.4%	0.6%	5.1%	6.7%	8.2%	8.8%

Source: SuperRatings estimates

Pension returns also rose over January, with the median balanced pension option up an estimated 3.5%. While an increase of 3.9% was estimated for the median growth option and a more modest 2.0% for the median capital stable pension option.

Pension returns to January 2023

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	3.5%	0.2%	4.7%	6.3%	7.9%	8.3%
SR50 Capital Stable (20-40) Index	2.0%	-0.4%	2.1%	3.5%	4.4%	4.9%
SR50 Growth (77-90) Index	3.9%	-0.5%	5.5%	7.5%	9.1%	9.6%

Source: SuperRatings estimates

“Funds have had a positive start to 2023 and it again underlines the way in which funds have navigated an uncertain market well overall. However, inflation remains high and the Reserve Bank’s commitment to controlling inflation means member balances are likely to see more ups and downs over the coming months.”, commented Executive Director of SuperRatings, Kirby Rappell.

Release ends

We welcome media enquiries regarding our research or information held in our database. We are also able to provide commentary and customised tables or charts for your use.

For more information contact:

Kirby Rappell
Executive Director
Tel: 1300 826 395
Mob: +61 408 250 725
Kirby.Rappell@superratings.com.au

February 9, 2023/by Joshua Lowen

Managed Accounts, Media releases

Media release: Lonsec announces key executive appointments

Lonsec Holdings today announces key strategic appointments following the acquisition of Implemented Portfolios Limited in August 2022. Bruce Hawkins joins in the newly created role of Chief Operating Officer, Naomi Christopher is appointed a Head of Marketing and PR across the Lonsec Group and Steve Garth is appointed as Lonsec Product Investment Oversight Committee Chair.

Bruce has over 30 years’ experience in financial services with an extensive track record across investment platforms, superannuation and life insurance. Bruce has held a number of senior positions spanning finance, operations and strategic development with companies including NAB Wealth, Aviva Australia and Xplore Wealth Limited. Prior to joining Lonsec, Bruce was Group Executive – Xplore Wealth at HUB24 Limited leading the Xplore business whilst assisting in its integration into the broader HUB24 business.

Naomi Christopher was most recently National Manager – Marketing and Communications at Implemented Portfolios (IPL) and joined Lonsec Holdings following the acquisition of IPL. Her career in financial services spans 13 years, where she has worked in similar marketing and communications related roles at other financial services businesses such as Midwinter Financial Services (a Bravura owned company) and SQM Research, the funds research and ratings house.

Lonsec CEO and Managing Director of IPL, Mike Wright says “Over the past six months, both the Lonsec and IPL teams have worked tirelessly to understand each business and client groups. I am excited about the growth plans we have for the coming year and the integration of our services to all clients. Bruce has led this integration project and I am delighted that he is joining in a permanent capacity.”

“I am equally delighted that Naomi is taking on the broader Head of Marketing and PR role across the group as she built IPL’s formidable marketing presence” continues Mike.

As part of the integration of the businesses, key Lonsec portfolio managers have been appointed to the IPL Asset Allocation and Investment Committee (AAIC), which is responsible for the investment decisions relating to the IPL portfolios. Lukasz de Pourbaix joined long-standing independent members of the committee post the acquisition of the business by Lonsec in 2022 and will be joined by Nick Field, Associate Portfolio Manager for Lonsec’s listed suite of portfolios. Nick has extensive portfolio management and investment research experience having held various investment research and portfolio management roles for the past 20 years. Nick will provide additional insights and rigour to the AAIC governance process.

Finally, Lonsec has also bolstered its internal portfolio governance framework with the establishment of a group Product Investment Oversight Committee (PIOC). The PIOC is a sub board committee to the Lonsec Board and is responsible for ensuring that the IPL and Lonsec portfolios have the necessary personnel, processes and risk management frameworks in place. Lonsec has appointed Dr Steve Garth as independent chair of the PIOC. Dr Garth brings to the PIOC two decades of experience in key Financial Services roles, including a broad career managing Australian and Global portfolios.

Release ends

For more information, please contact:

Nicci Chaplin
Senior Communications Manager
nicci.chaplin@lonsec.com.au
0402 317 746

February 7, 2023/by Nicci Chaplin

Media releases

Media Release: Market Uncertainty leads Super Funds into losses for 2022

Super funds experienced a turbulent 2022 with heightened inflation driving ongoing interest rate rises and throwing international markets into periods of significant uncertainty. The median Balanced growth option reported a -4.8% return for the 2022 calendar year, making last year the fourth time since 2000 that members have seen balances fall over the year to December.

This year’s return has been driven by declines in property and international shares and was further impacted by fixed interest failing to act as a safety net. However, superannuation has provided strong returns over the long term with an average 6.1% return since 2000.

The Perpetual Balanced Growth Fund provided members with the highest return of 1.7% over the year, while First Super also provided a slight positive return of 0.1% to its members.

Top 20 balanced options over 12 months

Rank	Option Name	1 Year %	10 Year % PA
1	Perpetual WealthFocus – Perpetual Balanced Growth Fund	1.7	6.9
2	First Super – Balanced	0.1	7.6
3	CareSuper – Balanced	-2.0	8.3
4	Brighter Super – Balanced	-2.2	7.4
5	Qantas Super Gateway – Growth	-2.2	7.7
6	Hostplus – Balanced	-2.5	9.1
7	Australian Retirement Trust – Super Savings – Balanced	-2.6	8.6
8	Mercer Super Trust – Mercer Select Growth	-3.4	–
9	Plum – Pre-mixed Moderate	-3.6	7.4
10	ESSSuper – Basic Growth	-3.6	–
11	TelstraSuper – Balanced	-3.7	7.9
12	HESTA – Balanced Growth	-3.7	8.1
13	CSC PSSap – MySuper Balanced	-3.9	7.5
14	Equip MyFuture – Balanced Growth	-3.9	7.9
15	Rest – Core Strategy	-4.0	7.5
16	Catholic Super – Balanced Growth (MySuper)	-4.1	7.6
17	legalsuper – MySuper Balanced	-4.3	7.7
18	Commonwealth Bank Group Super – Balanced	-4.3	6.1
19	Commonwealth Bank Group Super – Growth	-4.4	7.2
20	Spirit Super – Balanced (MySuper)	-4.4	7.7
	SR50 Balanced (60-76) Index	-4.8	7.5

While it has been a challenging year for many funds, we urge members to remember that superannuation is a long-term investment, therefore while it is interesting to see which funds performed well over the year, this needs to be considered in relation to performance over longer time periods.
The top 10 super funds all delivered 8% p.a. or higher over the last decade with the Hostplus – Balanced option the top performer over the long-term, with an average annual return of 9.1%.

Top 20 balanced options over 10 years

Rank	Option Name	1 Year %	10 Year % pa
1	Hostplus – Balanced	-2.5	9.1
2	AustralianSuper – Balanced	-4.8	8.8
3	Australian Retirement Trust – Super Savings – Balanced	-2.6	8.6
4	UniSuper – Balanced	-5.4	8.4
5	Cbus – Growth (MySuper)	-4.8	8.4
6	CareSuper – Balanced	-2.0	8.3
7	HESTA – Balanced Growth	-3.7	8.1
8	Hostplus – Indexed Balanced	-6.3	8.0
9	Vision Super – Balanced Growth	-5.3	8.0
10	Aware Super – Growth	-6.7	8.0
11	Equip MyFuture – Balanced Growth	-3.9	7.9
12	TelstraSuper – Balanced	-3.7	7.9
13	IOOF Employer Super Core – IOOF MultiMix Balanced Growth Trust	-5.2	7.9
14	Prime Super – MySuper	-5.6	7.8
15	Spirit Super – Balanced (MySuper)	-4.4	7.7
16	BUSSQ Premium Choice – Balanced Growth	-6.1	7.7
17	Qantas Super Gateway – Growth	-2.2	7.7
18	legalsuper – MySuper Balanced	-4.3	7.7
19	First Super – Balanced	0.1	7.6
20	Catholic Super – Balanced Growth (MySuper)	-4.1	7.6
	SR50 Balanced (60-76) Index	-4.8	7.5

We expect more ups and downs for markets over the coming months, with the path of inflation and the related interest rate movements remaining the key driver for whether funds can provide a positive return to members or not. It’s a good time for members to consider the level of ups and downs they are willing to tolerate and do a health check on their fund across performance, fees and insurance.

For members seeking a less bumpy ride there is a silver lining with cash returns expected to rise to around 4-5%, however while a significant improvement on the last few years, expected cash returns remain lower than inflation.

2022 was another eventful year for Australia’s superannuation members, with funds needing to adjust their strategies to increasingly consider risk as greater uncertainty led to a lot more ups and downs across investment markets.

We continue to see funds merging and investment menus consolidating but there remains a large number of products across the market – in our latest review we rated over 450 superannuation products. Our product ratings are accessible on our website here.

SuperRatings Executive Director Kirby Rappell said, “While members may be disappointed with this year’s performance, if we look at the long term, funds continue to perform well against objectives. With more uncertainty ahead, it remains important to set your strategy and try to ignore the current market noise to increase the odds of long term success.”

Release ends

We welcome media enquiries regarding our research or information held in our database. We are also able to provide commentary and customised tables or charts for your use.

For more information contact:

Kirby Rappell
Executive Director
Tel: 1300 826 395
Mob: +61 408 250 725
Kirby.Rappell@superratings.com.au

January 20, 2023/by Joshua Lowen

Lonsec Retirement Perspectives, Media releases

Media release: Super Funds Continue Year-End Rally

Leading superannuation research house SuperRatings estimates that the median balanced option generated a return of 2.6% in November, maintaining the momentum from October.

While inflation remains elevated, some improvement in equity market sentiment helped funds to regain some of the losses from the beginning of the financial year. Uncertainty remains however, as people prepare for the Christmas purchasing season, and members should expect to continue to see their super balances bouncing up and down over the coming months.

The median growth option increased by an estimated 3.2% in November, while the median capital stable option which has less exposure to share markets delivered a smaller positive result, with a rise of 1.6%.

Accumulation returns to November 2022

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SR50 Balanced (60-76) Index	2.6%	-1.3%	4.6%	5.9%	6.7%	8.0%
SR50 Capital Stable (20-40) Index	1.6%	-1.4%	2.1%	3.2%	3.9%	4.7%
SR50 Growth (77-90) Index	3.2%	-1.4%	5.5%	6.8%	7.7%	9.3%

Source: SuperRatings estimates

Pension returns also rose in November, with the median balanced pension option up an estimated 3.0%. While an increase of 3.4% was estimated for the median growth option and 1.8% for the median capital stable pension option.

Pension returns to November 2022

	Monthly	1 yr	3 yrs (p.a.)	5 yrs (p.a.)	7 yrs (p.a.)	10 yrs (p.a.)
SRP50 Balanced (60-76) Index	3.0%	-1.8%	5.0%	6.5%	7.3%	8.8%
SRP50 Capital Stable (20-40) Index	1.8%	-1.5%	2.3%	3.4%	4.2%	5.1%
SRP50 Growth (77-90) Index	3.4%	-2.1%	5.9%	7.6%	8.5%	10.1%

Source: SuperRatings estimates

“Funds have faced a tough calendar year, though performance has improved over the last couple of months. If we see a small negative return or even a flat return for the typical balanced option for 2022, depending on how December plays out, this would be a better outcome than anticipated a couple of months ago”, commented Executive Director of SuperRatings, Kirby Rappell.

Despite the difficult calendar year to date, superannuation remains a well performing investment over the long term, with an average 6.2% p.a. return since 2000. Mr Rappell commented, “While we expect to see continued ups and downs over the coming year, the recent recovery is good news for members who focused on the long term and stuck to their investment strategy. As the end of the year approaches, we encourage members to review their superannuation with a focus on their long-term risk tolerance to ensure their super is set up for the year ahead. There are a variety of tools to help determine the level of ups and downs you’re comfortable with, as well as the ability to call your fund or adviser for support. Hopefully, this will allow people to better cope with the bumps along the way, as we see super providing improved outcomes for people in retirement over time.”

Release ends

We welcome media enquiries regarding our research or information held in our database. We are also able to provide commentary and customised tables or charts for your use.

For more information contact:

Kirby Rappell
Executive Director
Tel: 1300 826 395
Mob: +61 408 250 725
Kirby.Rappell@superratings.com.au

December 9, 2022/by Kirby Rappell