Solid double-digit returns provide long-term confidence

Over the 2020-21 financial year, we watched the COVID-19 situation around the world evolve and continue to have financial and social impacts.

As lockdowns ended and vaccines were developed, we saw most of the global economy rebound, although there have been small setbacks as key economies experienced second and third waves. Vaccine rollouts are underway in major economies as well, helping to further the economic recovery. Central banks around the world continued to support the recovery by keeping interest rates low and buying government bonds to ensure there was plenty of money to support people and businesses doing it tough.

In financial markets, these factors saw global equities reach new highs in the financial year, although Australian equities didn’t perform as strongly as developed or emerging markets, despite the relatively better economic and COVID-19 infection outcomes locally.

In this environment, Media Super achieved solid double-digit returns for our members in the Balanced (MySuper) investment option, and members can have confidence that even through financial crisis and pandemics, our investment strategy is helping them make the most of their super.

Your investment returns for 2020-21

Our Balanced (MySuper) option returned 16.82% for the financial year and the pension Balanced option returned 18.80%, solid double-digit performance for our members and the highest annual returns in more than 20 years.

It’s important to remember that superannuation is a long-term investment. Over the medium and long-term, Media Super’s Balanced options have performed strongly and met their investment objective.

Our Balanced options’ return for three, five, seven and 10 years are all above median.¹

The Balanced options are well diversified across a number of asset classes, including Australian and international shares, credit, property, infrastructure, fixed interest, foreign currency and cash, as well as various alternative investments, such as our Fulcrum film and TV financing fund.

In times of crisis, our number one priority is preserving our members’ retirement savings. Due to the high level of uncertainty early in 2021-21 financial year, we took a more conservative stance, waiting for tangible signs of economic recovery before increasing exposure to growth assets. We adjusted our investment strategy in December to a more neutral stance, which resulted in improved performance in the second half of the financial year.

Working closely with our investment manager, we were also able to reduce investment fees for the Balanced options over the financial year.

View performance information for our full range of super, transition to retirement, and pension investment options.

The year ahead

While we’re seeing new waves of infection due to the Delta variant of COVID-19, vaccination rollouts are progressing around the world. Economic recovery continues to be patchy, with some industries experiencing booms, while others struggle. Supportive monetary policy from the major central banks is likely to continue, albeit at a reduced rate, which should help keep the value of financial and physical assets high, while the recovery in corporate earnings and household income continues.

Media Super is positioned well for this recovery and is increasing exposure to selected growth assets. Recognising that there will be ups and downs along the way, we have reinstated the Balanced option’s portfolio protection, a mechanism designed to reduce the impact if share markets fall significantly.

Looking ahead, we are confident our Balanced investment strategy is well positioned to continue helping members achieve a comfortable retirement.

Investment returns are not guaranteed and past performance gives no indication of future returns. Investment returns are net of investment fees and taxes.

1 SuperRatings Fund Crediting Rate Survey, June 2021 – Balanced options (60-76) Index and Pension Balanced options (60-76).