Remaining focused on the long-term as global factors impact short-term returns
The financial year 2022 saw investment returns across the superannuation industry impacted by a range of global factors. Rising inflation has seen the Reserve Bank of Australia and central banks overseas raise interest rates, the Russia/Ukraine crisis has impacted energy, gas and commodity markets, and the ongoing Covid-19 pandemic has put further pressure on global supply chains. Combined, these events have increased market volatility and affected short-term investment returns across a wide range of investments and asset classes.
Our robust investment approach and highly diversified portfolios have enabled us to deliver strong long-term outcomes for our members. This equates to an average annual return of 8.88% p.a.* for the Growth (MySuper) option since its inception 38 years ago.
While investment returns have been impacted across the superannuation industry, our short-term returns have largely been driven by our relatively larger allocation to emerging market equities – an asset class that provides diversification benefits and has a higher expected return over the long-term but has been impacted by global events such as the war in Ukraine as well as increased regulation imposed on a few key industries in China.
Despite lower short-term returns, our options have delivered strong long-term outcomes for members, which is what super is designed to deliver.
Investment Performance (%) to 30 June 2022
|Growth (MySuper) investment option*|
|1 year %||-3.77%|
|3 years % p.a.||4.98%|
|5 years % p.a.||6.55%|
|10 years % p.a.||8.96%|
|15 years % p.a.||5.94%|
|Since inception p.a||8.88%|
*Media Super merged with Cbus on 9 April 2022. The historical performance prior to this relates to Cbus’ investment options and does not incorporate the performance of Media Super investment options before April 2022. Past performance is not a reliable indicator of future performance. Investment performance is based on the crediting rate, which is the return minus investment fees, taxes, and until 31 January 2020, the percentage-based administration fee. Excludes fees and costs that are deducted directly from members’ accounts. The inception date is 1 July 1984.
Our commitment to investing in opportunities that benefit our members retirement outcomes
The investment team designs the Fund’s investment strategy to deliver strong long-term returns for our members. In the last financial year, we made a number of significant investments with long-term returns in mind.
The investment team’ total portfolio approach enabled them to act quickly and take advantage of market opportunities regardless of what market conditions they were faced with.
Earlier in the year we invested alongside leading integrated real estate group, Dexus in acquiring a 33.3% stake in Western Australian’s Jandakot joint venture project which holds the Jandakot general aviation airport, existing industrial properties and developable land which will also help create significant jobs for the local community.
Whilst navigating through challenging market conditions, we were also pleased to have introduced six new investment options. This expanded suite (now comprising 12 investment options in total) provides our members with greater choice and flexibility to meet their retirement needs and allowed us to deliver on our successful Media Super merger.
Our total portfolio approach to responsible investing ensures our members’ retirement savings take material ESG risks into account, and benefit from new opportunities and innovations. One such innovation is our recent partnership with Copenhagen Infrastructure Partners (CIP) in acquiring a 10% stake in CIP’s Australian offshore wind project, Star of the South.
Star of the South is Australia’s most progressed offshore wind project and will be located off the south coast of Gippsland in Victoria. Star of the South has the potential to power around 1.2 million homes and supply up to 20% of Victoria’s electricity needs while creating jobs and investment in the Gippsland region.
We will continue to invest in opportunities and businesses with strong sustainable growth and as the world continues to evolve, we’ll evolve with it. Investing in super is about the long-term and we will continue to make sure your hard-earned savings will help you secure a better retirement future.
Past performance is not a reliable indicator of future performance.
United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 as Trustee for the Construction and Building Unions Superannuation Fund ABN 75 493 363 262 offering Media super products (Media Super). Past performance information is not indicative of future performance. This information is about Media Super and does not take into account your specific needs, so you should look at your own financial position, objectives and requirements before making any financial decisions. Read the relevant Media Super Product Disclosure Statement to decide whether Media Super is right for you. Also read the relevant Target Market Determination.