TelstraSuper reports high single-digit FY24 returns

TelstraSuper has announced a return of 9.6 per cent for its MySuper Growth investment option for the financial year 2024.

Its MySuper Balanced investment option – which applies to members between the ages of 50 and 65 – earned 8 per cent, while the MySuper Moderate option (for members aged between 65 and 70) delivered 7 per cent returns.

Additionally, TelstraSuper’s MySuper Conservative option, for members above age 70, earned 4.9 per cent.

For the first time, the $26 billion fund was able to report the full-year results for its new High Growth investment strategy, which was introduced in October.

“This is designed for members seeking higher long term returns who are comfortable with high levels of fluctuations in returns, particularly over the short term,” TelstraSuper said.

The option, which has a high exposure to shares and a tilt towards technology and venture capital-type investments, is “off to a strong start”, according to the fund, earning 12.2 per cent for the nine months to 30 June.

TelstraSuper chief investment officer Graeme Miller said: “In the last 12 months, we have once again seen the benefits of TelstraSuper’s Lifecycle MySuper arrangement which provides members with a higher exposure to growth assets, such as shares and property, for much of their working life, and then is designed to progressively reduce risk from age 50 onwards.”

Moreover, Miller highlighted TelstraSuper’s meticulous approach to balancing risk and return across different age groups in its lifecycle arrangement. This strategy, he said, ensures that the capital of older members, who are in more conservative investment options, is better shielded from potential market downturns.

“Younger members under 50 years who are decades away from retirement generally have time on their side to ride out periods of market volatility that can come from a higher exposure to growth assets,” he said.

Also in October, TelstraSuper made changes to its Lifecycle arrangement to increase the age at which MySuper members transition from its Growth to its Balanced investment option.

According to the fund, this previously occurred at age 45, but in recognition of changing lifestyles, working patterns, and longevity, this transition point was increased to age 50.

“Importantly, our Growth option is invested across a range of diversified assets, which makes investing super in this option typically less risky than investing in a single asset class, such as shares,” Miller said.

The results come after TelstraSuper announced its intention to explore merger options as part of its long-term strategy earlier this year.

In May, the corporate fund said it is “currently in a strong and healthy position” with positive net member growth, high member advocacy, and a growing retirement segment.

“After careful consideration of the fund’s long-term strategy where size and scale are increasingly important, the TelstraSuper Board has determined that our members’ interests will be best served in the long term by seeking a suitable merger partner aligned to the Fund’s objectives and values,” it said at the time.