In a statement on Monday, Colonial First State (CFS) reported strong returns for its FirstChoice Employer Super funds, with the MySuper Lifestage 1965-69 balanced fund delivering 13.8 per cent and the MySuper Lifestage 1975-79 growth fund returning 16.6 per cent.
Its chief investment officer, Jonathan Armitage, credited the CFS investment team’s disciplined approach to managing volatility as a key factor in delivering strong returns for its MySuper members.
“Delivering double digit returns is particularly pleasing given 2024 was a volatile period in investment markets due to significant geopolitical events including ongoing conflicts and elections in key global markets. Our MySuper members benefitted from the very strong returns from global equities as well as robust performance from Australian shares,” said Armitage.
“Achieving such strong performance against this backdrop reflects the experience and capability of our investment team. We believe that inflation data will continue to be volatile in 2025 so diversification and active risk management will be critical components of portfolio construction in the year ahead.”
Meanwhile, TelstraSuper reported a 12.67 per cent return for its MySuper Growth investment option for members under 50, attributing the strong result to positive share market performance, particularly in the US.
Graeme Miller, TelstraSuper’s chief investment officer, noted that the MySuper Growth option is tailored to long-term investors, offering a higher allocation to growth assets like shares.
“Our members in the MySuper Growth option generally have long investment horizons and can therefore potentially benefit from a greater allocation to growth assets, such as shares. This approach is designed to build long-term wealth during the early accumulation years that will compound over the longer term. The past two years have contributed positively towards this long-term objective,” Miller explained.
In October 2023, TelstraSuper updated its Lifecycle arrangement, raising the transition age from MySuper Growth to MySuper Balanced to 50 and from Balanced to MySuper Moderate to 65. The changes aim to extend growth potential while balancing risk and return as members age.
The fund reported on Monday that its MySuper Balanced investment option earned 10.49 per cent, while the MySuper Moderate option delivered 8.67 per cent returns.
Additionally, TelstraSuper’s MySuper Conservative option, for members above age 70, earned 5.94 per cent.
Also in 2023, the fund also introduced a High Growth investment option, targeting members seeking higher long-term returns and comfortable with short-term fluctuations.
With a focus on shares, technology and venture capital, the option delivered strong 2024 returns of 15.35 per cent (net of fees and taxes), exceeding its objectives.
