We use cookies to improve your experience on our website. By continuing you acknowledge cookies are being used. View the privacy policy.
Super Log in
Strong returns for ANZ Smart Choice Super Lifestage members for the 12-months to 30 June 2024
Published on 08 Aug 2024
Our 1960s to 2000s ANZ Smart Choice Super Lifestage investment options, where the majority of our members are invested, all delivered strong, double-digit returns for the year to end 30 June 2024.
Especially strong returns from global shares, which were powered by impressive earnings from a handful of technology shares, coupled with the continued successful deployment of our alternative investment strategies, contributed to these double-digit returns.
The strong 10.99% return for the 1960s Lifestage option also placed this option in the top five MySuper funds surveyed by SuperRatings for the 12-months to 30 June 20241
Lifestage 1950s to 2000s options also achieved returns equal to or better than the median return of the MySuper funds surveyed by SuperRatings for the 12-months to 30 June 2024.2
The Lifestage investment options provide exposure to a mix of growth, defensive and alternative asset classes based on members’ age. The allocation to these classes will automatically adjust, becoming more conservative over time as a member gets closer to retirement. In this way, the Lifestage investment options aim to help members preserve their capital and reduce the volatility of their returns as they near retirement.
Based on your decade of birth, the table below shows how your investment option performed over the 1, 3 and 5-year periods to end 30 June 2024.
Latest investment returns to 30 June 2024
| Investment Option | 1 year (%) | 3 years (% p.a.) | 5 years (% p.a.) |
|---|---|---|---|
| 1940s | 8.08 | 3.36 | 3.62 |
| 1950s | 9.40 | 3.97 | 4.41 |
| 1960s | 10.99 | 5.00 | 5.87 |
| 1970s | 10.68 | 4.57 | 6.11 |
| 1980s | 11.17 | 4.97 | 6.57 |
| 1990s | 11.14 | 4.99 | 6.64 |
| 2000s | 11.03 | 5.01 | 6.59 |
Note: Returns quoted use the unit price which is calculated using the net asset values for the relevant month end. Please note that all returns are after the deduction of investment fees and tax. Reporting data is to 30 June 2024 (p.a. = per annum). Performance returns are annualised for periods greater than one year. Past performance is not a reliable indicator of future performance.
What helped drive these strong financial year results?
The Lifestage investment options’ exposure to international shares, predominantly US technology shares, contributed to the strong financial year returns across all options, and particularly those options with a higher allocation to growth assets (the 1960s to 2000s options).
Global stock prices made especially solid gains given the continued optimism on the prospects for ‘Artificial Intelligence’ (AI) and renewed hopes for lower interest rates later this calendar year.
In particular, the largest AI chipmaker – Nvidia –a company in which the Lifestage options have exposure to – led the charge with a 192% stock price gain given strong revenue and profit growth. In fact, Nvidia’s stock has experienced a remarkable 3001% price rise over the last five years*.
Investments in private and unlisted assets
The strong performance from international shares over the past 12-months was so profound that it overshadowed returns from the Lifestage options’ unlisted assets.
Unlisted assets – investments in companies and businesses not listed on stock markets - provide the Lifestage options with valuable sources of diversification which have, in recent years, contributed significantly to performance. Their continuing presence in the portfolio means that returns are not dependent on just a handful of asset classes for performance, but rather potential returns can come from many differing sources.
The Lifestage options also benefited from investments in extended and alternative credit strategies, which can be described as loans made by investors to commercial borrowers. The return patterns from these strategies differ from those provided by shares and so are valuable sources of diversification within the portfolio, as well as returns.
What does the year ahead hold?
Global shares have performed so well that valuations of some of the big technology stocks in particular are now starting to look ‘stretched’. Amid this heavily tech-powered rally, investors should not lose sight of finding opportunities elsewhere.
As such, the ANZ Smart Choice investment team enter the new financial year with a cautious but constructive outlook. Consistent with this cautious view, they will continue to rebalance the Lifestage options into markets and asset classes that have underperformed while taking gains in those markets that have outperformed.
This also includes increasing the Lifestage options’ exposure to unlisted assets. Their long-term value, relative return stability and contribution to portfolio diversification should help to deliver consistent returns for members.
Investment markets fluctuate over time, that’s why ANZ Smart Choice Super is focused on delivering consistent positive returns for members over longer periods than just one year.
ANZ Smart Choice Super’s robust investment strategy – centred on building a well-diversified portfolio that includes investments across many asset classes – underpins this approach to deliver future long-term performance.
Need more information?
You can access your personalised ANZ Smart Choice Super returns by logging into your account and visiting the ‘Investment portfolio’ page via your ANZ Smart Choice Super account.
For those super members who like to control their own asset allocation mix, ANZ Smart Choice offers investment options covering the major individual asset classes. For members invested in these options, you can access returns by logging into your account, visiting the ‘Investment portfolio’ page and clicking ‘Compare Performance’ via your ANZ Smart Choice Super account.
