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Mid-year investment update 2024/25

February 24th, 2025

Large enough to perform, small enough to care.

First Super had a great first half of the 2024/25 financial year. Our fund passed the $5 billion mark and again delivered strong investment results for our members.

These are great achievements for our growing fund, but it’s another number that’s really exciting – First Super is in the top 25% of super funds for overall member satisfaction.1

It’s easy to see why our members are satisfied. On average, members who call us wait less than 58 seconds before being put through to a real person.2 So if your super questions are lurking on your ‘to-do’ list, now’s the time to ask us.

Investment update

So far this financial year, all our investment options’ returns have been above their performance objectives. Our Balanced option delivered a 4.73% return for super members, and a 5.31% return for retirement members.3

Investment option (super)Investment returns from 1 July – 31 December 2024*
Balanced (Default)4.73%
Shares Plus5.97%
Growth5.49%
Conservative Balanced4.16%
Cash2.07%
Investment option (retirement)Investment returns from 1 July – 31 December 2024*
Balanced (Default)5.31%
Shares Plus6.45%
Growth5.95%
Conservative Balanced4.58%
Cash2.44%

*Past investment returns are not a reliable indication of future returns

What contributed to our returns

Cash returns remained strong. Term deposits, where most cash is invested, continued to return about 5%.

Shares, both Australian and international, provided above long-term average returns. US share markets continued to outperform the rest of the world, with tech stocks remaining the significant contributor. All other options benefitted from this outperformance, apart from the cash investment options.

Australian and international infrastructure also performed well contributing to returns, but Australian property continued to disappoint.

Looking ahead

If you’re invested in cash investment options, we expect current investment returns to continue. If the Reserve Bank reduces the official interest rates however, this will reduce cash investment returns. Australian and international share markets look like they will have another above-average year in 2025.

The re-election of President Trump has injected confidence in the US share market. Given that the US share market dominates the world share market index, this can only be good for investors.

Reductions in global interest rates should impact international infrastructure positively. We have increased our allocation to bonds and international equities, which should be a positive contributor to returns.

We’re here to help

To find out more about your investments you can:

Log into your firstonline account to view your investments. See your balance on the dashboard, get more details on the ‘Your Account Estimate’ page.

Contact us to ask questions about your investments. Call us on 1300 360 988 or email us.

Make a financial advice appointment with our team. Advice about investment is covered by your membership so there’s no extra charge.4

Disclaimer

  1. CSBA’s FEAL Superannuation Customer Experience Study, August 2024.
  2. As at Dec 2024. This time excludes the recorded compliance message played when the phone call is connected. Wait times may be longer or shorter depending on availability of people to answer your call.
  3. Past returns are not an indicator of future returns.
  4. First Super Financial Advisers are authorised representatives of Industry Fund Services Limited (ABN 54 007 016 195, AFSL 232514).

Issued by First Super Pty Ltd (ABN 42 053 498 472, AFSL 223988) as Trustee of First Super (ABN 56 286 625 181). This document contacts general advice which has been prepared without taking into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and read the Product Disclosure Statement (PDS) before making any investment decisions. To obtain a copy of the PDS or Target Market Determination, please contact First Super on 1300 360 988 or visit our website at firstsuper.com.au/pds.