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, most VicSuper FutureSaver investment options delivered positive 1-year returns to 30 June 2020. This supported continued, solid long-term returns. Notably, the default VicSuper FutureSaver Growth (MySuper) investment option ranked in the top ten performers against peers for the rolling 1, 3, 7 and 10-year periods to 30 June 2020*. 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.
*Returns for the VicSuper FutureSaver Growth (MySuper) investment option were in the top 10 for the 1, 3, 7 and 10 year periods, and in the top quartile for the 1, 3, 7 and 10 year periods, as published in the SuperRatings Fund Crediting Rate Survey (SR50 MySuper Index) for 30 June 2020. This option is representative because it contains over half of total of the VicSuper division’s funds under management. Note that past performance is not a reliable indicator of future performance. These results were produced when VicSuper FutureSaver was offered by VicSuper Pty Ltd as the Trustee of the VicSuper Fund prior to the successor fund transfer to on 1 July 2020 when it became part of the VicSuper division of the First State Superannuation Scheme. Chart can be found at vicsuper.com.au/investments
If you’d like more information, or if we can help, don’t hesitate to get in touch.