February investment update
Successful COVID-19 vaccination rollouts across the globe, particularly in developed markets like the USA and UK, along with lower infection rates saw improved investor sentiment in February. This translated into generally positive returns for stock markets during the month (excluding Emerging Markets) and growth assets in general. Bond yields increased at a quick pace during the month as investors started to price in higher inflation expectations.
In this investment environment, Media Super’s Balanced options (MySuper and pension) recorded an increase of 0.92% for February 2021, in line with the market median.1
It’s important to remember that superannuation is a long-term investment and over the longer term, Media Super’s Balanced options are performing strongly. Over the last 10 years, super members in the Balanced option received a return of 7.66% p.a, above the median return of 7.45%1.
Your investment returns
The Balanced (MySuper) option returned 9.36% for the financial year to 28 February 2021 and the pension Balanced option returned 10.44%.
It’s important to note that longer term our Balanced options are performing strongly and meeting their investment objectives. Our Balanced options’ returns for three, five, seven and 10 years are all above median.1
Media Super’s Balanced options (MySuper and pension) are well diversified across a number of asset classes, including Australian and global shares, property, infrastructure, fixed interest, foreign currency and cash, as well as various alternative investments, such as our Fulcrum film and television financing fund.
While uncertainty remains due to COVID-19, as we wait to see the impact of vaccination programs around the world on economic recovery, it is nowhere near the uncertainty experienced in 2020.
We recognise there will continue to be ups and downs in financial markets, we are now more optimistic in our outlook.
While we started the financial year with a broadly neutral position for the Balanced investment options, adjustments made to our investment strategy in December to take a small overweight to our growth allocation. We believe this will lead to better risk-adjusted returns for members in year ahead.
As always, we will continue to work with our investment managers and advisors to identify new opportunities and ways to enhance our existing strategies.
Looking ahead we remain confident that our Balanced option is well positioned to continue meeting its long-term investment objective for your super and pension savings.
We’re here to help
If you have any questions or concerns about your investment options, or you’re considering making an investment switch, please call the Helpline on 1800 640 886.
Note: Investment returns are not guaranteed and past performance gives no indication of future returns.
1 SuperRatings Fund Crediting Rate Survey – SR50 Balanced options (60-76) Index & SRP50 Balanced options (60-76), February 2021.