Growth, market volatility and inflation key themes this quarter
Markets performed well overall in 2021, despite the challenges and disruptions brought on by the pandemic. This resulted in positive performance from your super for the 12 months to 31 December 2021. In the first quarter of 2022, however, returns from share and bond markets were negatively affected by a combination of factors. These included the ongoing war in Ukraine creating additional volatility, rising inflation (including a sharp rise in the price of fuel), and the impact of supply chain disruptions on businesses.
Looking forward, we believe that markets will continue to be volatile, and that returns will be challenged as interest rates continue to rise. The US central bank has signalled that interest rates in the world’s largest economy might rise more quickly than initially anticipated, and this has also dampened investors’ expectations.
Against this backdrop, it’s important to remember that super is a long-term investment and that when we invest your super, we do so with the aim of maximising your long-term savings. This means taking short-term risks into account, while implementing a longer-term, risk-adjusted strategy with the aim of delivering strong long-term performance and helping you retire with more.
Top-10 performance1 – helping you retire with more
More than 80% of our accumulation members are invested in our MySuper FutureSaver Growth investment option, which delivered strong positive performance this year – returning 8.2% for the 12 months to 31 March 2022.
Long-term performance is what is most important for our members’ super savings, so it’s good news that strong performance in the short and longer term means our MySuper FutureSaver – Growth option ranked in the top 10 for 3,5 and 10 years to 31 March 2022.2
You can feel confident that your super savings are working hard for you, helping you retire with more.
Find out how your investment option has performed
Our retirement strategies also delivered positive performance
If you are one of our members nearing or in retirement, we tailor options typically used at this stage of life to help safeguard your super savings by cushioning the impact of short-term market falls, while still allowing for some growth when markets rise.
Our retirement-focused investment options delivered positive returns in the 12 months to 31 March 2022, with the Flexible Income Growth option returning 7.8% for the 12 months to 31 March 2022.
You can feel confident you’re with a top-performing fund. Our Flexible Income Growth option has delivered top-10 performance over 5 and 10 years to 31 March 2022.3
Find out about how much you might need to retire, and how to start planning for your retirement.
1 Source: SuperRatings Fund Crediting Rate Survey 31 December 2021 (SR Balanced (60-76) index - approximately 50 options). VicSuper FutureSaver – Growth (MySuper) Option ranked in the top 10 for 3, 5 and 10 year periods. Past performance is not a reliable indicator of future performance.
2 Source: SuperRatings Fund Crediting Rate Survey 31 December 2021 (SR Balanced (60-76) index - approximately 50 options). VicSuper FutureSaver – Growth (MySuper) Option ranked in the top 10 for 3, 5 and 10 year periods. Past performance is not a reliable indicator of future performance.
3 Source: SuperRatings Pension Fund Crediting Rate Survey, 31 December 2021. SRP50 Balanced (60-76) Index – approximately 49 options. VicSuper Flexible Income Growth option ranked in the top 10 for 3,5, and 10 year periods. Past performance is not a reliable indicator of future performance.