FROM THE CEO: MID-YEAR INVESTMENT UPDATE

Below is a performance update for the six months to 31 December 2021.

First Super built on the impressive returns for the first half of the 2021 calendar year, with the superannuation Balanced option returning 4.99% for the period 1 July to 31 December, and 13.10% for the 12 months to 31 December. The pension Balanced option returned 4.75% and 14% over the same periods.

All other investment options had positive results too, with Shares Plus leading the pack as share markets continued to show steady, though more moderate, growth.

Investment returns from 1 July to 31 December 2021*

Superannuation performance
Balanced (default)	4.99%
Shares Plus	6.94%
Growth	4.80%
Conservative Balanced	2.87%
Cash	0.09%
Pension performance
Balanced (default)	4.75%
Shares Plus	6.37%
Growth	6.05%
Conservative Balanced	3.12%
Cash	0.12%

*Interim crediting rates for six months. Past investment returns are not a reliable indicator of future returns.

Conditions changed in the lead-up to Christmas with the Omicron COVID variant dampening a predicted economic upswing in retail, hospitality and tourism sectors.

The 2022 year so far

Members shouldn’t expect 2022 to deliver the same double-digit gains as 2021. Already, rising inflation around the world has caused share markets to fall, with fears it will lead to interest rates increasing sooner than expected.

What does this mean for members?

Highs and lows in share market are a natural part of the investment cycle. It’s important to remember that super is invested for the long term, and over the long term it’s performing well. In fact, First Super’s superannuation Balanced option has averaged a return of 8.39% per annum over the last 10 years to 30 June 2021.

How we’re managing your money

Our investment managers are constantly monitoring and responding to market conditions. We’re in a good position to handle any future volatility and strike the balance between taking advantage of any opportunities while protecting your retirement savings.

Is Cash a good option?

With record-low interest rates the last few years, members invested solely in the Cash investment option won’t have earned much in the way of returns. This could change if interest rates rise and cash and term deposits yield stronger results in future. However, it’s important to consider diversifying your super beyond Cash if you’re wanting to grow as well as protect your money during retirement.

Need help?

• To explore First Super’s five investment options, visit our Investment options webpage.
• To speak to someone about your investments, call our Member Services Team on 1300 360 988 or visit our Advice webpages to book an appointment with our Financial Advice Team. Advice about investment choice is covered by your membership, so there’s no extra charge**.

**First Super financial planners are authorised representatives of Industry FundServices Limited (ABN 54 007 016 195, AFSL 232514).