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Your super is with a strong, long-term performer
While the COVID-19 crisis resulted in a sharp downturn in global economic activity in March 2020, our performance rebounded in the June quarter. It's important to remember short-term market volatility is not unexpected within an economic cycle and that your super is a long term investment.
Watch the video below to hear from Sunsuper's Chief Economist, Brian Parker.
The following is the output of transcribing from an audio recording. The transcript has been included to make the video accessible to people who are deaf or hard of hearing. Although all reasonable attempts have been made to ensure accuracy of the transcript, in some cases it may be incomplete or inaccurate due to inaudible passages or transcription errors.
Hi I’m Brian Parker and I’m Sunsuper’s Chief Economist.
The COVID-19 pandemic has had a major impact on superannuation returns.
While share markets around the world have recovered strongly since late March, returns for the last financial year were negative. Sunsuper’s Balanced option for Super-savings accounts posted a loss of 1.7% for the year, the first financial year loss since 2012.
It’s vitally important to remember that superannuation is a long-term investment – for most of us, the longest-term investment we will ever have. And longer term returns remain very strong. Over the last decade to 30 June, Sunsuper’s Balanced option has produced a return of nearly 8 percent per annum: that’s a real or after inflation return of more than 6% per annum, despite a number of significant market downturns over that period.
The recovery in world share markets and investment returns has continued since the end of June. However, we have no way of knowing exactly how this pandemic is going to evolve from here and nor can we predict with any certainty how the economy and financial markets will evolve in the short-term.
While the COVID-19 crisis continues to have a profound impact on all our lives, as investors we also know that every crisis and every recession comes to an end bar none. And before they end they provide long-term investors the opportunity to acquire quality assets at attractive prices. Over recent months Sunsuper’s investment team have been doing just that.
The recovery in markets and investment returns over recent months is welcome, but as always, I’d encourage any of our members, if you’re concerned by the ongoing impacts of COVID-19 to speak to one of our financial advisers to find out if the Sunsuper investment option you have is the right one for you. Please give Sunsuper a call on 13 11 84.
Strong, long-term investment returns
The COVID-19 pandemic resulted in an unprecedented downturn in global economic activity in March, which impacted most investments. It is important to remember that the negative return in 2019-20 follows many years of very strong returns. In fact, this is the first negative return since 2012.
While it's disappointing to see a negative return over one year, we have already seen a bounce back in the three months to 30 June 2020 and our Balanced investment option has continued to outperform the industry average over the long-term:
Source: SuperRatings Fund Crediting Rate Survey - SR50 Balanced (60-76) Index, June 2020. Past performance is not a reliable indication of future performance.
Find out the performance of our other investment options
Our 1-year return in context
The COVID-19 crisis resulted in a sharp downturn in global economic activity in March 2020. While our performance rebounded in the June quarter, Sunsuper's Balanced investment option for Super-savings accounts produced its first negative 1-year return since 2012. It's important to remember, though, that while we are disappointed to see a negative return in any 1-year period, short-term volatility is not unexpected within an economic cycle. Super is a long-term investment and we accept some years of lower, possibly negative returns, in order to achieve strong, long-term returns.
Outperformance over the long term
Despite the economic downturn this year, Sunsuper's Balanced investment option for Super-savings accounts posted returns of 6.5 per cent p.a. over the last five years, and 8.0 per cent p.a. over the ten years to the end of June 2020. Our returns outperformed the industry average over 3, 5, 7 and 10 years, and exceeded the return objective set in our Product Disclosure Statement.
Where to from here?
We have no way of knowing with any certainty how the COVID-19 outbreak will progress, or how financial markets and the economy will respond. However, crises do tend to provide investment opportunities. Sunsuper remains well-placed to capture those opportunities as they arise. Our experienced team of investment professionals remain focused on managing well-diversified portfolios that deliver strong long-term returns while reducing out members' exposure to share market volatility.
Fees among the lowest in the industry
Lower fees are great news for you since the less you pay in fees on your super account, the more money you'll have to live your retirement dreams.
1 Based on administration and investment fees and costs currently at 31 May 2020, SuperRatings Fundamentals Report, Average Super Industry Fees based on Balanced (60-76) style options (excludes insurance costs).
2 Based on administration and investment fees and costs currently at 31 May 2020, SuperRatings Fundamentals Report - Sunsuper for Life MySuper Balanced Pool (excludes insurance costs).
Find out more about our lower fees
Recognised as the Fund of the Year
We're proud to be named both Chant West's and SuperRatings' 2020 Fund of the Year. Since 2015, we've also held Canstar's highest 5-Stars Outstanding Value rating for outstanding value superannuation. And we're Money magazine's 2020 Best MySuper Lifecycle Product.
Strong returns
7.97% p.a.
over 10 years
Sunsuper Balanced option
to 30 June 20201
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1 The balanced option for Super-savings accounts has identical investments to the balanced Pool in Sunsuper's default investment option, the Lifecycle Investment Strategy. Members invested in the Lifecycle Investment Strategy are invested 100% in the Balanced Pool until age 55. Warning: Past performance is not a reliable indication of future performance.
2 Percentage based fee applies to the first $800,000 of account balance only (if account balance is over $800,000 a nil percent Administration fee applies to the balance over $800,000). Does not include investment fees and costs. For balances under $6,000 on products offered a maximum 3% fee cap applies, inclusive of administration fees, investment fees and indirect costs.
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