Damien Webb: Hi, I'm Damien with a quick update on what's happening with the market and what it means for your super. We've seen markets continue to move as investors react to what's in the news. While these financial wobbles can feel unsettling for our members, history tells us to expect them and we always factor these into our investment approach. So let's take a closer look at the reasons behind these market movements and what we're doing about it
No doubt you've noticed the cost of things like food and electricity going up. That's because of inflation, which can hit pockets hard and has been more difficult to control than many economists expected. Central banks like the Reserve Bank of Australia and the US Federal Reserve have lifted interest rates as they try to slow down spending and keep inflation in check. Now the big question... Is it working? Well, there are reassuring signs it is. And if the RBA agrees, it may pause rate rises like it did in early April. But only time will tell if inflation is coming back down.
You might have heard about the collapse of the Silicon Valley Bank of the United States, followed by problems at Credit Suisse, which is a much larger Swiss bank. Regulators and governments quickly stepped in to reassure clients that money was safe and markets have since settled down. To investors it seems a banking crisis has been avoided and many believe that the peak of inflation is over. One of the best ways to see your super through and back on the up is to invest in a variety of quality assets, which is exactly what we do. While it's tempting to focus on your returns as they stand today, super is best understood by taking a step back. As an example, let's look at the last three years of performance of some of our investment options. In the 2021 financial year, we saw extraordinary returns, more than 20% for some options. Last year was more disappointing and challenging markets saw negative returns. For this financial year, which ends on 30 June, our returns have so far been positive for most options. This is a great lesson in the reality of investing.
Over the years your super's invested we expect to see times of performance isn't as strong. Here it helps to see super as a long game. If we look at the last ten years, we see that a high growth option had returns over 9.4% per annum, while our balanced growth pension option, where most of our retirees are invested, had returns of 7.2% per annum.
We're always looking for better ways to grow your super. So we've decided to open an office in London, where I'll be moving with my family to head up our international team. By being closer to the markets in the UK and Europe, we can give you greater access to global opportunities, not easily reached from here in Australia, and we expect these opportunities will help enhance your returns over the long term. Naturally, we'll continue to invest as efficiently as possible so our member fees and costs stay down. And now I'd love to introduce you to Anjana Moran of our property team, a colleague of mine who's can introduce to a really exciting new property investment we've made for the benefit of our members.
Anjana Moran: Thanks, Damien. Hi, I'm Anjana and I help decide which property investments will deliver the best returns for you. Investing in property helps to protect your super by making your portfolio more diverse. Returns and direct property usually come from rental income and from growth in the property's value. Another benefit is that direct property values tend not to move up and down as much as other investments like shares, which can help keep your returns more stable.
We've recently bought a 22% stake in a company called Get Living, a build to rent platform based in the U.K. Built to rent buildings are designed to be rented over the long term rather than sold to individuals. Often they're developed by large investors like us, who then continue to own the building and rent out the apartments. Get Living is the second largest build to rent operator in the UK and currently owns and rents around 4000 homes in six neighbourhoods across London and Manchester. It also has plans for 6500 new developments so it's set to grow strongly over the next few years.
We're really excited about Get Living and as it grows, you should benefit from its growth if you're invested in our core and socially conscious, diversified options. If you want to find out more about how the markets work, you can sign up for a webinar or talk to an advisor. Head to our website to get started.