Retirement
AustralianSuper posts small return
AustralianSuper has delivered a modest return against the odds and revealed that it saw almost $8 billion in funds converted to cash during the COVID-19 crisis.
AustralianSuper posts small return
AustralianSuper has delivered a modest return against the odds and revealed that it saw almost $8 billion in funds converted to cash during the COVID-19 crisis.
AustralianSuper’s Balanced option delivered a positive return of 0.52 per cent for the 2020 financial year – a stark contrast with the 8.67 per cent return in 2019, but understandable given the market panic caused by COVID-19.
“We have been through an extraordinary health and economic crisis that severely affected domestic and global markets,” said AustralianSuper chief investment officer and deputy chief executive Mark Delaney.
“To arrive at the end of the financial year with a positive result given the turmoil we have seen is a very good outcome for members.
“Returns were strong in the first half of the year, and financial markets have been buoyed by the enormous amount of monetary and fiscal stimulus from governments in the past three months.”
Despite the low return for 2020 financial year, Mr Delaney said the focus “should always be on the performance over the long term”.
“Consistent, long-term performance is what matters most when it comes to superannuation,” Mr Delaney said. “Even someone close to retirement is looking at being invested potentially for another 20 years.”
AustralianSuper also held more cash through the virus, due to large numbers of members asking for their investments to be switched into cash – something that Mr Delaney said was “very interesting and also very concerning”.
“If members switched to cash on March 18, which was the date that the government announced Australia would go into lockdown, and had a $100,000 balance on March 18, they would have lost roughly $8,000 by the end of June,” Mr Delaney told the ABC.
AustralianSuper saw $8 billion switched from growth style investment options to cash due to “panic and fear” that Mr Delaney said left many investors feeling “intimidated”.
“There’s less panic and fear out there than what there was, but we haven’t fully returned to normal,” Mr Delaney said.
RELATED ARTICLES
About the author
About the author
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more
