First Super enjoys strong 2013/14

First Super enjoyed a strong 2013/14, with all but one investment option (cash returns) exceeding their annual benchmark targets.

Addressing First Super’s 2013/14 annual general meeting, co-chairperson Allan Stewart said the returns reflected strong manager performance.

Members enjoyed above target returns in most asset classes, Stewart said. Highlights were:

• Balanced option returning 11.6%, 5.1% above the benchmark.
• Growth option returning 13.93%, 7.2% above its benchmark.

First Super’s default option has returned 6.63% compounded annually over the past 10 years. This return is above the 10-year return target of 6.26%.

The tables below set out the performance for each of the First Super’s investment options.

Accumulation

Investment Option	2013/14 Performance	Benchmark (annual)
Balanced	11.6%	6.52%
Conservative Balanced	8.9%	6.27%
Growth	13.93%	6.77%
Shares	15.93%	7.02%
Cash	2.73%	3.27%

Pension

Investment Option	2013/14 Performance	Benchmark (annual)
Balanced	13.02%	6.52%
Conservative Balanced	10.17%	6.27%
Growth	10.33%	6.77%
Shares	17.83%	7.02%
Cash	3.22%	3.27%

 

First’s Growth option is similar to other funds’ default option.

Stewart said it was pleasing to see First Super’s Growth option returned more to members last financial year than many other funds’ default options, including Australian Super and Cbus – and well above SuperRating’s median fund return of 12.7%.

Manager performance was again in 2013/14 above expectations with:

• All but one of First Super’s active Australian and international equity managers beating their performance benchmarks set by First Super’s board of directors.
• First Super’s private equity fund managers generating excess returns by the successfully listing some of their investments on the Australian Stock exchange.
• Two out of three infrastructure investments producing above benchmark returns.
• Strong performance by two real estate managers.

Unlike larger funds, First Super has the ability to select smaller managers who are able to outperform the market and their benchmarks.

With record low interest rates, First Super’s cash investment returns, like those for many other funds, have continued to decline.

The cash investment option will, most likely, see further low returns with term deposit returns forecast to remain at record lows this financial year.

Stewart said First Super’s board will continue to work hard to search out for members the highest term deposit returns with quality banks.

This publication was issued by First Super Pty Ltd (ABN 42 053 498 472, AFSL 223988), as trustee of the First Super superannuation fund (ABN 56 286 625 181). The information is not investment advice and does not take your personal circumstances into consideration. You should consult the product disclosure statement (PDS) before making any decision. Content was accurate at the date of issue, but may subsequently change. You should contact First Super on 1300 360 988 for updated information and to obtain a copy of the PDS.