WA Super News
Strong returns continue
At WA Super, we ended the 2017/18 financial year with some solid returns. When looking back further, over the past 5 and 7 years, we’re proud that 5 out of our 9 investment options are in the top quartile of their relevant peer group. Here’s our top 3¹
How are we doing?
Over the last 12 months (to 31 August 2018), all four diversified investment options have exceeded their CPI-linked return targets.
Investment returns to 31 August 2018
MyWASuper has been a positive performer delivering returns of 9.36% owing to its balanced allocation between growth and defensive assets.
The Diversified High Growth option has seen returns of 13.22% and has led our other diversified options during the last 12 months, mainly because of higher exposure to growth assets.
Our Diversified Conservative option posted returns of 5.88% lagging our other diversified portfolios over the last year, but was the best performer in the March quarter when the S&P/ASX 200 index saw its worst quarter performance since the GFC. The higher allocation to defensive assets in this option protected it from being more heavily impacted by large falls in share prices.
The Sustainable Future option has delivered attractive long-term returns in all time periods, with the last 12 months seeing an especially strong 11.80%. This option invests in companies that specifically address major social and environmental challenges, and the returns prove that it’s possible to focus on the world’s biggest problems and still experience healthy investment growth.
Our asset class options – especially Global shares of 20.50% – also show healthy reported returns for all time periods below.
Investment returns to 31 August 2018
If you compare us to other funds with similar investment options, you’ll see that we’re able to deliver above average returns and, even when our returns aren’t the highest (which can happen!) we’re still competitive against other funds.
Our returns highlight that we’ve confidently managed risk while the markets have been performing well over recent years. But it’s important to note that – at WA Super – our focus on diversification means that we’re a safe pair of hands when volatility does strike.
Solid returns when markets go down as well as up
The following charts compare the average monthly returns between WA Super’s option and the median returns of other funds’ comparable options as reported by SuperRatings¹. A comparison for WA Super’s 3 diversified portfolios has been shown, and the illustration is based on an Up month and a Down month².
Our returns are still as competitive as the most well-known super funds in our peer group, but, when markets don’t perform so well, look how our average returns stack up.
Note: WA Super’s allocation to growth assets in this option is 36%. The SuperRatings’ survey Capital Stable Median allocation is between 20% and 40%. Growth assets include shares and property.
Note: WA Super’s allocation to growth assets in this option is 57%. The SuperRatings’ survey Conservative Balanced Median allocation is between 41% and 59%. Growth assets include shares and property.
During the 2017/18 financial year, WA Super delivered above average and competitive returns in months when the ASX 300 performed positively.
And when the ASX 300 reported a monthly negative return, our average monthly returns actually outshone our peers.
The High Growth fund’s average monthly return over months where the ASX 300 was negative was almost 0.40%. For the same period, many other funds showed negative returns.
Note: WA Super’s allocation to growth assets in this option is 82%. The SuperRatings’ survey Growth Median allocation is between 77% and 90%. Growth assets include shares and property.
1. We take only the right amount of risk to deliver solid returns
We’ve designed our portfolios to be fit for purpose for the financial profile of our membership. If our goal was to try and always outperform our peers, then we’d have to take an unreasonable level of risk when investing members’ money.
Ensuring that only the right amount of risk is taken to return the maximum possible investment, means we focus on reducing the chance of members experiencing sustained losses or negative returns.
No two funds have exactly the same financial profile so it is important to keep this in mind when comparing funds.
2. Being open to ideas provides more dynamic investment opportunities
We take every chance to test that our strategy is delivering the best outcomes for our members. As a smaller investor, this flexibility allows us to be more active and nimble, and we take advantage of opportunities or manage risks when they arise.
Larger investors can face challenges to implement their decisions because trade sizes need to be large and therefore can impact markets.
3. Our diverse investment mix delivers a smoother ride for members
WA Super’s portfolios are more diverse and less reliant on shares to generate returns than other funds with similar risk profiles.
We ensure our portfolios have a suitable level of exposure to shares, but we actively invest in other opportunities that behave differently to shares; especially when markets move.
Our focus on diversification means we’re a safe pair of hands when volatility does strike. It allows us to deliver a smoother ride for members, and ensure there are less bumps in the road on their journey towards retirement.
Now for the boring bits
¹Based on the results of the Fund Crediting Rate Survey June 2018 provided SuperRatings Pty Ltd, a superannuation research house. The survey provides information about the investment performance for Australian super funds.
²An ‘Up’ or ‘Down’ month has been determined by looking at the average monthly returns of the ASX 300 during the 2017/18 financial year. An ‘Up’ month is where there were positive average market returns above zero, which was 10 out of the 12 months. A ‘Down’ month is where average market returns were below zero, which was 2 out of the 12 months).
The Sustainable Future option was relaunched on 1 December 2017. From this date, the investment option's asset allocation changed from it being invested only in Australian Equities to being diversified. This change reduced the option's risk rating, and is likely to reduce its return on investment going forward. Therefore, these returns cannot be used to predict future performance of this option or be compared against other investment options with similar investment objectives or asset allocations. However, if you wish to seek historical returns prior to 1 December 2017 for the Sustainable Future option, please review our latest annual report or email us at email@example.com.
The MyWASuper option commenced on 1 November 2013 and returns before this date refer to the predecessor product, Diversified Moderate. On 21 November 2016, the Diversified Moderate option was closed to Super Solution members and all monies in it were transferred to MyWASuper.
‘Australian Shares’ were called Australian Listed Equities before 21 November 2016.
’Global Shares’ were called Global Listed Equities before 21 November 2016.
‘Bonds’ were called Bonds and Yield before 2 June 2016.
These performance rates are not guaranteed. Past performance is not a reliable indicator of future performance.
Performance rates contained in the tables above are WA Super’s "Declared Rates". Members who have payments from WA Super will have a mixture of "Declared" and "Interim" rates applied to their payment. Please contact us for additional information.