Super shines through hard times

The frequently used platitudes associated with superannuation have certainly shown grains of truth as we look at last financial year’s investment performance. Expressions such as, ‘It’s time in the market, not timing the market’, ‘Super is a long-term investment’, ‘Past results are no guarantee of future returns’ certainly ring true.

After a major market plunge in February and March 2020, super funds have made a strong recovery, with rating agency Chant West declaring super funds have returned their strongest financial year result in 24 years.

So if you were invested in some growth assets you will most likely notice a large increase in your overall super balance.

In general, growth assets enjoyed a strong return with both Aussie and international shares topping the list. Cash and bonds returned small positives and investors who switched to these asset classes would have missed the tsunami upswing. And members who withdrew around this time would have also missed the big returns sourced from growth assets.

NGS Super’s Investment Performance Summary speaks for itself, but it is worth noting that the default option, Diversified (My Super) returned 17.34% to 30 June 2021. Other outstanding performers were International Shares (28.94%), Shares Plus (27.01%) and Australian Shares (26.17%).

You can see a detailed investment performance summary to 30 June 2021 on the NGS website

It is safe to say that over long periods of time, Australia’s leading super funds, including industry funds, have protected members from unnecessary risk and grown their wealth for a prosperous and dignified retirement. In spite of various attacks by successive governments, the dream put in place by Paul Keating and his advisers remains robust, healthy and strong.

NGS Super extends its best wishes to you during this difficult period of the COVID pandemic. Stay safe, stay home and please follow the advice of our medical experts. And a huge THANK YOU to all the medical professionals fighting to keep us safe.

Bernard O’Connor NGS Super

(Important information: The information in this article is general information only and does not take into account your objectives, financial situation or needs. Before making a financial decision, please assess the appropriateness of the information to your individual circumstances, read the Product Disclosure Statement for any product you may be thinking of acquiring and consider seeking personal advice. Past performance is not a reliable indicator of future performance. Any opinions are those of the author and do not necessarily reflect the view of NGS Super.)