A top 20 performance for members
In a year of continued global political uncertainty and escalating tensions over trade agreements, we saw numerous periods of significant market fluctuations. Despite the ups and downs, Media Super has again delivered strong investment returns for our members, with both our super and pension Balanced option returns well ahead of the median for Australian super funds*.
According to independent agency SuperRatings, the 2017–18 returns for Media Super's Balanced (MySuper) option, in which most members are invested, ranked in the top 20.*
All major asset classes we invested in delivered positive returns for the financial year. Our strong performance for the year was a result of a bias towards investment in top performing asset classes – Australian and international shares, along with infrastructure – compared to investment in comparatively poorer performing fixed income assets.
Your investment returns
Our Balanced (MySuper) option returned 10.14%^ for the financial year to 30 June 2018, well ahead of the median return of 9.22%.*
The pension Balanced investment option also continues to perform strongly, returning 11.00%^ for the financial year to 30 June 2018, also well ahead of the median return of 9.92%.**
It's important to remember that super is a long-term investment - and we're delivering strong, long-term returns as well. With a 10-year return of 6.33%^, we're meeting our Balanced (MySuper) investment objective of CPI +3.5%.
Media Super's Balanced options are well diversified across shares (Australian and international), property, infrastructure, fixed interest and cash investments, as well as various alternative investments, such as our Fulcrum film and television financing fund.
By investing in our Balanced investment option you also have added peace-of-mind knowing we have portfolio protection in place, a mechanism designed to reduce the impact of losses if share markets fall heavily, as they did at several points in 2017–18. We are one of the few funds that has this type of protection in place.
The year ahead
While we delivered strong, double-digit returns in 2017–18, we have a more cautious outlook for 2018–19.
Valuations for shares and real assets (such as property and infrastructure) have continued to increase over the past 12 months and we question how much longer this can continue. Markets at high valuations have generally been very sensitive to shocks and surprises – and there's certainly no shortage of these currently.
Risks around global trade wars, the rise of populism and unpredictable global politics can all be drivers for a market correction (where markets fall significantly but not to the extent of a crash). To navigate the potential risks ahead we've maintained our portfolio protection and increased the diversification and flexibility of our investment portfolio.
Looking ahead, we are confident our Balanced investment strategy is well positioned to continue meeting our long–term investment objectives for your super and pension.
We're here to help
Everybody's investment needs are different. If you have questions about your investment options or would like help developing an investment strategy that best meets your needs and circumstances, please call our Helpline# on 1800 640 886.
^ Investment returns are not guaranteed and past performance gives no indication of future returns.
* SuperRatings Fund Crediting Rate Survey - SR50 Balanced options (60-76) Index, June 2018.
** SuperRatings Fund Crediting Rate Survey - SRP50 Balanced options (60-76) Index, June 2018.
# Helpline Advisers providing general or limited advice are representatives of Mercer Outsourcing Australia Pty Ltd (MOAPL) ABN 83 068 908 912, AFS Licence 411980.
Media Super has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514 to facilitate the provision of financial advice to members of Media Super. Advice is provided by one of our Financial Planners who are Representatives of IFS. Fees may apply. Further information about the cost of advice is set out in the relevant Financial Services Guide, a copy of which can be obtained by calling IFS on 1300 138 848. IFS is responsible for any personal advice given to you by its Representatives.