Investment update: mid-year 2018/19 performance

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 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*.

Statements coming soon

Your employees who are First Super members will be receiving their 2018/19 mid-year statements shortly, which will give them an update on their super accounts and more details on the Fund’s investment performance for the half year ending 31 December 2018.

If they contact you with queries about First Super or their investment options, please direct them to contact our Member Services Team on 1300 360 988, or they can book a call  with one of our Financial Advisors. Our CEO, Bill Watson, has also filmed a mid-year investment update, whick they can view here.

* 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.