WA Super News

WA Super Performance Update

08/05/2020

The recent health and economic crisis caused by the Coronavirus outbreak has had a significant impact on equity markets. The damage to markets was concentrated in March, when the major world sharemarkets experienced falls of around 30%, greatly impacting investment performance. At WA Super, our approach is to do our best to reduce the magnitude of losses and deliver a more stable, consistent and reliable return profile.

March 2020 performance update video

But it’s not all bad news

Despite the significant market losses in March, which created much anxiety and distress for investors, our default MyWASuper option delivered the best investment monthly performance for the top 50 MySuper default investment options, according to industry research agency, SuperRatings.

 

1 Month Return – MySuper SR50* and WA Super

1 Year Returns

 

The recent investment market turmoil has meant the annual performance returns for many MySuper options for super funds to turn negative; WA Super is one of the few funds listed by SuperRatings to deliver a positive investment return for the MySuper investment option over the past 12 months to 31 March 2020 and has performed above the median fund return compared to the Top 50 super funds over the past 3 and 5 years.

1 Year Return – MySuper SR50* and WA Super

1 Month Returns

 

Our Investment Strategy cushions the levels of negative returns

At WA Super, we construct portfolios aligned with the risk and return profile of our members. This means building portfolios that have a more stable, consistent and reliable return profile. Our diversified portfolios include allocations not only to shares, property and bonds but to a broad range of assets such as hedge funds, real return funds and alternative risk premia funds.

These investments are intended to provide meaningful diversification, from bonds and equities; and tend to be less dependent on these investments on broader macroeconomic conditions. This diversification tends to help lower volatility and cushion the levels of negative returns that we are currently experiencing. Compared to other super funds, we take a more conservative approach and have a smaller exposure to equities and a higher exposure to other asset classes, such as alternatives and bonds.

Our belief is that this approach should preserve our member’s superannuation balances by protecting their savings when sharemarkets experience a severe downturn. This conviction was turned into reality in the recent period of losses and volatility. This outcome means that our members can be a bit more reassured and less anxious, when others may be panicking.

Notes: *The MySuper SR50, is the investment performance of the top 50 super funds (by size) by the respective investment option as provided by SuperRatings’ Fund Crediting Rate Survey, 31 March 2020.

 

The information provided contains general advice which does not take into account your specific objectives, financial situation or needs. Before investing, you should consider the appropriateness of this general advice with regard to your personal circumstances. You may also wish to obtain independent financial advice.

Investment returns can go up and down and are not guaranteed. All investments have risk, and past performance is not a reliable indicator of future performance.

For more information on risks associated with investing or before making a decision about WA Super, you should consider your financial requirements and read the Product Disclosure Statement available at www.wasuper.com.au or by calling us on 08 9480 3500

 

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