You may have seen media reports that superannuation returns were negative for the year – I’m pleased to be able to report that this isn’t the case for Vision Super, and that our default Balanced growth option had a modest positive return of 1.96% (and 2.22% in our pension plans) for the year ending 30 June 2020.
While this wouldn’t be a great achievement in other years – Balanced growth has returned a healthy 8.13% over ten years – with the current pandemic and resulting economic downturn, it’s a relief to be able to tell most of our members that your super balance has still gone up this year in what’s been very tough times for a lot of people. To give our result some context, SuperRatings looked at returns across all balanced funds and found the median return was negative 1.2% for the year. Our result puts us in the top ten performing funds in the country over 1, 3, 5, 7, and 10 years – you can find all the details in the Investment update included in this newsletter. AustralianSuper, which is the biggest fund in the country, is reporting a 0.52% return for their default option for the financial year.
In our pension plans, the Balanced growth option returned a healthy 2.22% for the financial year – which makes Vision Super the number 1 performing pension option in Australia over one year.
Part of the reason for Vision Super’s result is that we were taking less risk than most funds going into this crisis, and that we took some more risk off when we saw how things were heading. We were fortunate though that luck was with us and markets went our way when we added some of that risk back in.
It’s impossible to say what the next year will hold – as I write this, Melbourne is now in stage 4 lockdown for at least the next six weeks – but I want to reassure you that our Investments team is closely monitoring developments on a daily basis and looking at both the short term and the long term implications for our portfolio so we can continue to safeguard your retirement savings in the midst of uncertainty.
The Vision Super team are working from home and will continue to work from home until it’s safe to return to the office, but we’re still here whenever you need us – the Contact Centre is still available during normal business hours, both on the phone and by email. If you need more in-depth help with your super or financial planning, our planners are still able to help via phone or video conferencing.
I hope you and your loved ones stay well during these difficult times.
Investors should be aware that returns may go up and down, so past returns are not a guarantee of future performance.