Solid investment returns as economic recovery continues
As we move into the last quarter of the 2020-21 financial year, economic data continues to show global activity is recovering, including international trade returning to pre-pandemic levels. We are now more than 12 months past the worst of last year’s financial market losses with many markets now firmly above their early-2020 peaks.
We are seeing especially strong returns for commodities, including copper, which is a good barometer of economic activity. We expect inflation to pick up in the months ahead before it fades back to the low levels we’ve observed over recent years.
Media Super’s Balanced investment options are achieving solid, double-digit returns for the financial-year-to-date. It’s important to remember that superannuation is a long-term investment and over the longer term, Media Super’s Balanced options are continuing to achieve strong returns for our members. Over the last 10 years, super members in the Balanced option received a return of 7.81% p.a, above the median return of 7.65%.1
Your investment returns
The Balanced (MySuper) option returned 11.20% for the financial year to 31 March 2021 and the pension Balanced option returned 12.49%. And for a rolling 1-year period to 31 March 2021, the Balanced (MySuper) option has returned 17.43% and the pension Balanced option returned 19.48%.
These solid returns after the volatility last year, as well as our ongoing strong performance over the longer term – shown in the tables below – demonstrate once again why switching investment options during times of uncertainty is not always a good idea. Members who switch when short-term losses occur, often do not switch back to reap the benefits when markets recover and grow their account balances.
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 some uncertainty remains due to new COVID-19 strains emerging as global vaccination programs are not sufficiently progressed in reaching critical mass, economic recovery is firmly on track with the extreme levels of uncertainty and pessimism seen in 2020 now firmly in the rear view mirror.
We recognise there will continue to be ups and downs in financial markets, however we remain optimistic in our outlook and are hesitant to call an end to this phase of strong economic activity too early.
While we started the financial year with a broadly neutral position for the Balanced investment options, adjustments were 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.
You can also find more information about our full range of investment options, and read our handy guide to choosing the right investment option to suit your needs.
Note: Investment returns are not guaranteed and past performance gives no indication of future returns.
1 SuperRatings Fund Crediting Rate Survey – Super Balanced (60-76) Index & Pension Balanced (60-76), March 2021.