Thursday, 6 July 2023
Aware Super has delivered a double-digit return for its flagship investment option, continuing its run as one of Australia’s top-performing superannuation funds.
The fund’s default MySuper Lifecycle option for members aged 55 and under has returned 10.7% for the 2023 financial year, benefitting from a resilient and highly diversified investment portfolio.
It caps off a momentous 12 months for Aware Super – one of Australia’s biggest funds, with 1.1 million members and $160 billion under management. The fund is rolling out a suite of new products and services for its members as part of a sweeping digital transformation project, and has announced plans to open its first international investment office.
Aware Super’s Chief Investment Officer, Damian Graham, said: “We’re pleased to have delivered such a strong return for members at a time when the global economic backdrop remains clouded, and after a year characterised by further market volatility.
“That volatility was particularly pronounced early in the financial year, then receded later in the year despite continuing inflationary pressure and rising interest rates.”
”There are signs inflation might now be easing, but it’s too soon to suggest those economic pressures are going away so we’ll be as vigilant as ever in prudently managing our members’ investments for the long term to help set them up for their best possible retirement.
“While it has been a strong year, we’re always at pains to emphasise the importance of focusing on returns over the long term rather than those for any single year, and indeed, our High Growth option – which younger members with our MySuper Lifecycle product are invested in – has averaged 9.3% per annum over the past decade.
“This serves as another important reminder of the value in taking a long-term view of your super. If your circumstances haven’t changed, staying the course with your investment option can be the best approach in the event of market volatility – a fact worth remembering given the economic outlook remains uncertain.”
Aware Super’s default MySuper option is a lifecycle product that actively steps down risk as members near retirement age. Up to age 56, default members are invested in High Growth.
The 10.7% return for the High Growth option comes as the fund works to deliver further benefits of scale for its members. In May, the fund completed a project to consoldiate five legacy technology systems into a single administration and registry platform
As part of the digital transformation project, it is introducing a host of new products and services for members. Among them, it has redesigned its investment menu and rolled out new low-cost indexed options and new socially conscious options to complement its existing socially conscious options for members in both the accumulation and retirement phases.
Aware Super has also announced it is opening an investment office in London – its first overseas office – to help source and manage key offshore investments.