‘Narrowly focused’ global shares boost CareSuper FY24 returns

12 August 2024

| By Jessica Penny |

CareSuper’s MySuper Balanced option delivered a return of 8.5 per cent for super members and 8.7 per cent for pension members for the financial year ended 30 June 2024.

According to the fund, its Balanced strategy and its other diversified or pre-mixed options delivered returns higher than the long-term average.

Namely, its Growth option saw a return of 10.1 per cent, while its Sustainable Balanced and Conservative Balanced options both delivered 7.5 per cent.

“When we look at the underlying drivers of these returns, results across the main asset classes were quite varied, with global shares boosting our performance with an increase of around 20 per cent,” CareSuper said on its Balanced option.

It said that these gains were narrowly focused, with more than half of the return coming from a small handful of US companies in technology and artificial intelligence (AI).

“While global shares were the standout performer, we also saw good results from Australian shares, as well as from our infrastructure, private equity and credit investments,” it said.

Property investments, meanwhile, had a more challenging year, finishing in a negative position.

Observing significant variation between asset classes over the year, CareSuper said this illustrates why a diversified mix is important for delivering consistent and resilient performance.

“Achieving this is central to our approach to investing, which aims to deliver strong long-term returns while also protecting our members’ savings,” it said.

Looking ahead, the fund said it will be keeping on the pulse of the US election in November, alongside other key economies.

“Clearly investors will need to continue to balance a complex mix of events and investment trends. Our team is well placed to both identify opportunities and manage risks as they emerge,” it said.

Last month CareSuper and Spirit Super provided an update on their merger plans, confirming they are on track to deliver on the deal later this year.

The merger is expected to take effect from 1 November and the newly formed entity will be called CareSuper.

Explaining the name change, current CareSuper chair Linda Scott said: “While this is a true merger of equals, both funds decided it was in the best interests of members to call the fund CareSuper to take advantage of strong recognition for the name, which has been in the market since 1986.

“Elements of the Spirit Super brand identity will be retained to highlight our shared national heritage and member focus, including Spirit Super’s distinctive logo which enjoys strong and positive recognition among its membership.”