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Investment update

February 27th, 2019

January 2019’s investment returns provided a welcome boost to our Fund’s performance after a volatile period for share markets.

The 2018/19 financial year got off to a positive start. Then followed volatility in Australian and international share markets between October and December 2018, which meant that First Super’s investments – like those of other super funds – posted negative returns.

Between 1 July and 31 December 2018, the Balanced (MySuper) option lost 0.78% in value and the Balanced Pension option lost 0.97%.

Although disappointing, this was better than what many other super funds delivered with their equivalent products. This is partly because our Balanced option invests less in growth assets (e.g. shares) than many other super funds. This means when share markets fall, our members’ savings are less exposed to these losses. First Super also invested more in cash holdings in 2018, which also protects against losses during share market volatility.

The good news is that the New Year has brought some relief to share markets. For January 2019, our Balanced option returned 1.57%, immediately restoring the Fund’s performance to positive for the year so far.

We are expecting more volatility in 2019. And this is completely normal in investment markets. It’s why we, like all super funds, take a long-term view of investing; short-term ups and downs generally even themselves out over longer periods.

First Super has had solid long-term performance over the past decade. The Balanced option has returned an average of 6.46% a year over ten years, and 9.66% a year over the past five years*.

Support and more details

If you want to check that you are invested in the right option for your circumstances and retirement goals, you can book a call with one of our Financial Advisors.

Look out for your mid-year statement, which will give you an update on your super account and more details on the Fund’s investment performance for the half year. Our Investment Returns & Crediting Rates web page has all the information on current and past investment returns.

* Past investment returns are not a reliable indication of future returns. Crediting rates are the return minus investment costs and taxes and allowing for reserves.