Positive returns for members through industry leading performance*
Positive returns across all investment options for the 6-month period to 31 December 2020 means we have continued to deliver top-10 performance*. This is a great outcome for members, particularly given the challenging year that was 2020.
Equities (shares) led the rebound in markets, rising strongly since their March 2020 lows. This means options such as High Growth and Growth, with a higher allocation to equities, benefited most.
High Growth returned 11.4% in the 6-month period to 31 December 2020^
Strong performance for super members
Over 90% of members are invested in our default investment options (Growth and Balanced Growth), which are celebrating industry leading, top-10 performance over the 3, 5 and 10 years to 31 December 2020*.
Members in our Growth option benefited from a strong return of 9.1% over the 6 months to 31 December 2020, locking in top-10 performance for the calendar year* and bolstering 1-year returns.
Despite the market falls seen in the first half of the year, the returns to all of our diversified options are above their stated investment objectives over rolling 10-year periods.
This means your savings are working hard, helping you retire with more.
† Our Accumulation Growth option achieved top quartile returns out of 50 funds, for the 12-months ending 31 December 2020, as well as top quartile outcomes for the annual average return over the 10-year period to 31 December 2020 (out of 49 funds). The net return data shows the net benefit a member would have after 10 years, based on a $50k starting balance and employer super contributions on a $50k annual starting salary, as 31 December 2020. Outcomes vary between funds. Data and comparisons are modelled on the SuperRatings Fund Crediting Rate Survey, SR50 Balanced (60-76) Index. The table shows the average difference in ‘net benefit’, a measure of investment earnings after fees and taxes have been taken out. Past performance is not indicativeof future performance. For the latest investment returns please visit our website: aware.com.au/returns
If you are in our retirement strategies, it’s also good news
In options typically used by members nearing or in retirement, we have strategies that are designed to cushion the impact of market falls. And during the peak of COVID-19, these dampened the impact of the sharp market decline.
In addition to these benefits, all of our retirement focused investment options also delivered strong positive returns in the 6 months to 31 December 2020 as investment markets rebounded.
Members in our Retirement Income Stream Balanced Growth option enjoyed returns of 6.1% for the 6 months to 31 December 2020, and can take comfort in top-10 performance over 3, 5, 7 and 10 year periods#.
Our retirement strategies, previously managed by StatePlus, also had positive 6-month returns to 31 December 2020. The Flexible Income Plan Balanced option returned 5.3% for the 6-month period. For all returns please visit retire.aware.com.au/investmentsproducts
Did you switch during the COVID-19 market volatility?
The swift rebound to unprecedented market falls in March 2020 has shown it’s important to remember that super is a long-term investment and to keep your retirement savings invested.
Switching to a more conservative option during volatility can lock in a loss. It’s also tricky to time your move back into more growth-oriented investments, meaning you may miss out on any market recovery.
Disclaimer: The chart shows the historical unit price movements of investing in the Accumulation High Growth option versus switching to Cash on 23rd March 2020. Contributions, withdrawals, fees and insurance premiums are not modelled. Past performance is not a reliable indicator of future performance. For more information on each option, including return objectives and Standard Risk Measures, please read the relevant Member Booklet available on our website.
Typically, the longer you remain invested, the less impact short-term dips in the market will have on your retirement savings. This can be seen in our continued strong returns over 10-year periods.
You can take comfort that your super is invested in a diversified mix of good quality assets that can grow your savings over time, riding out the impacts of short-term market falls.
If you switched your investments during the market falls last year, you may want to reconsider whether you are invested in the right option(s) for you and your retirement goals.
Choosing the right investment option
You can access simple advice at no cost as a member of Aware Super. If you are unsure which investment option is right for you, we are here to help. Contact us at 13WARE.
Our MySuper Lifecycle investment approach is improving to ensure our members’ investments suit their life stages and to help them retire with more.
*SuperRatings Fund Crediting Rate Survey, December 2020. SR50 Balanced (60-76) Index, Aware Super Growth option is a top-10 performer over 1, 3, 5 and 10-year periods to 31 December 2020. SR25 Conservative Balanced (41-59) Index, Aware Super Balanced Growth option is a top-10 performer over 3, 5, 7 and 10-year periods to 31 December 2020. ↩
^Aware Super Accumulation High Growth option. ↩
# SuperRatings Pension Fund Crediting Rate Survey, December 2020. SRP25 Conservative Balanced (41-59) Index. ↩