VicSuper News

Investment performance update

Delivering good investment outcomes in a challenging year

The financial year to 30 June 2020 saw unprecedented and challenging market conditions. COVID-19 disrupted the optimistic market outlook and saw share markets fall by around a third from late-February to mid-March. But share markets recovered these losses through the final quarter, buoyed by supportive monetary and fiscal policies globally.

Despite the volatile market conditions, VicSuper Flexible Income delivered positive 1-year returns across most of its investment options. For example, the VicSuper Flexible Income Capital Stable investment option delivered strong long-term returns of more than 7% per annum over the 7 and 10-year time periods. This is a great result for our members given the challenging environment.

Importantly, our diversified investment approach – spreading money across a range of quality investments – continued to help moderate the fluctuations in the investment returns of our diversified options.

Looking ahead, we believe we’ll continue to see heightened volatility as markets grapple with the risk of a second wave of COVID-19 infections, rising geopolitical tensions with China and the implications of the US election. Despite this continued volatility, we remain well placed to manage your superannuation and grow your retirement savings. Our overarching approach of investing with the aims of sustainable long-term returns, and only taking on investment risk that will be adequately rewarded, supports our goal of continuing to deliver strong long-term returns for members. Find out more about our investment performance.