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Super Review’s 2025 Guide to Superannuation
What were the key factors that influenced your fund's performance in 2024, and how did market conditions impact your investment strategy?
UniSuper’s Balanced (default) option returned 9.2 per cent for the year to 30 June 2024. The performance of the Balanced option (and options with high allocations to growth assets) was driven mainly by strength in equity markets.
Our Sustainable High Growth and Sustainable Balanced options returned 15.2 per cent and 12.2 per cent respectively for the year to 30 June 2024. These options have different asset allocations to their mainstream counterparts, including a higher allocation to international shares compared to Australian shares, and the additional screening criteria applied. The strong performance this year for these options was largely driven by the higher exposure to international shares, particularly to the US. Additionally, a sector tilt towards IT and a low allocation to the materials sector further contributed positively to their returns.*
How did your asset allocation decisions evolve throughout the year, and which sectors or asset classes performed exceptionally well or poorly?
The strength in equity markets benefited investment options with higher allocations to listed equities and particularly to international equities.
Asset allocation is based on the risk profile of the investment option. As active investors we adjust our portfolios based on our views and in line with the strategic asset allocation of the option; specific ranges for investment options are available on our website. Being close to investment markets with a strong in-house team gives us a natural advantage when it comes to setting strategy, monitoring our investments, and managing asset allocation. We believe our portfolios are well-positioned for the long term.**
What risk management strategies did you implement in response to market volatility in 2024, and how effective were they in mitigating losses?
We position our portfolios for the long term. For members concerned about volatility, we offer a choice of investment options across the risk spectrum, including pre-mixed multi-asset class options, and sector options that members can combine into a strategy that suits their needs. Having an in-house team has also enabled us to develop some unique options like our Global Companies in Asia investment option, which seeks to take advantage of the expected growth in consumption of emerging Asian economies by investing in well-established global brands. Members can get assistance in choosing their strategy through our advice team, with different levels of advice catering to different needs.
Could you share a brief overview of your fund's member demographics, and how you have engaged with them throughout the year to address their needs?
UniSuper has over 647,000 members as at 30 June 2024. Twenty per cent of our members are under age 30, and approximately a third of our members are 50 and over. We provide members across all age groups a range of opportunities to engage with their super.
Having an in-house investment team with people constantly watching the markets has enabled us to offer a range of investment-related content. Through our Super Informed Radio podcast, we deliver a monthly summary of market activity in around 10 minutes. Members can hear directly from chief investment officer John Pearce in his quarterly video updates, where he discusses market moves, trends and the economic outlook. These are all accessible via our website and social media platforms to our members and the wider community.
Through our Advice team, we also offer live and on-demand webcasts covering a range of topics. Members approaching or in retirement can connect with our team at our popular Retirement Outlook events, which we take to most state and territory capital cities.
Looking ahead, what lessons have you learned from 2024 that will shape your investment strategy for 2025 and beyond?
We will continue to focus on investing in quality assets – both listed and unlisted. During the 2024 financial year, we made some significant investments in unique assets, including Forico, Tasmania’s largest hardwood estate, the Burra Park development site adjacent to the new Western Sydney International Airport, and a US$400 million commitment to Macquarie’s Green Energy and Climate Opportunities Fund. With over 70 per cent of our funds managed in-house, we have the capability and skills to assess and execute deals quickly and efficiently.
** As at 30 June 2024.
Disclaimer:
Past performance is not an indicator of future performance. Option returns are for accumulation accounts, calculated net of taxes and investment expenses, but before account-based fees are deducted, for the 12-month period to 30 June 2024. Information on our investment options is available on our website and in the PDS. Sustainable and environmental investing means different things to different people. Different products have different investment criteria. See our website to find out what sustainable and environmental investing means to us and what our investment options invest in. Consider UniSuper Limited’s PDS and TMD on its website and your circumstances before making decisions, because we haven’t.
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TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.45 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
30.48 3 y p.a(%)
