By Seamus Collins, Chief Investment Officer
“Share markets rebounded faster than many investors anticipated. Members invested in our diversified investment options benefited with strong returns over the last 12 months, with our High Growth investment option achieving a 26.20% return.”
Mine Super members who invest in our diversified investment options have seen substantial returns over the last 12 months. These gains were driven by a strong bounce back in share prices following the fall in markets at the start of last year. We made
the most of this exceptional opportunity by increasing our investments in share markets after values fell, taking advantage of the subsequent rebound and helping boost members’ balances even further.
Mine Super in the newsMine Super Growth option best performing Super funds have had a record year, delivering the best returns in more than 24 years according to Chant West. The top-performing growth fund was Mine Super’s Growth option, which delivered a 22.6% return to members. This
news was celebrated by many publications including The Australian Financial Review, The Australian, Daily Telegraph and Super Guide. (Source: Chant West, Super Funds Post A Stunning 18% Gain – The Second Highest Return Ever, 19 July 2021) Low fees + top performance = great news for Mine Super members When it comes to super, it’s important to understand the role fees can play in the overall competitiveness of your super fund. According to Rainmaker Information, industry super funds generally came out on top based on analysis
of fees compared to five-year performance. Of the 10 best MySuper products in the market, Mine Super’s Lifecycle Investment Strategy came out at number 7! Overall, industry super funds had the lion’s share of top performing MySuper products. (Source: ABC News – The Business, 5 July 2021) |
The journey so far
Just over two years ago we made significant changes to our investment strategy, which reflected member feedback, and this year those changes paid off with great returns in our diversified investment options.
In the past, we focussed on delivering investment returns that met specific investment targets, and we were successful in meeting these goals over many years. In 2019, we adjusted our investment strategy to target
returns that still aim to meet investment objectives, but also to compare well with other super funds.
This means we’ve invested more in Australian and international shares – especially in low-cost passive funds – as well as in infrastructure and cash, but less in alternative investments, such as hedge funds.
This strategy is more in line with market peers, but more importantly, has delivered strong investment returns over the last year, as you can see in the chart below.
What’s on the horizon
The investment outlook remains reasonably good over the medium-term – due to low interest rates, strong government spending and increasing economic activity as COVID-19 vaccines roll out across the globe. However, we won’t see the returns
we achieved over the last 12 months (such as 26.20% in the High Growth option!) repeated every year. Remember, super is a long-term investment and past performance isn't necessarily a good indication of future returns.
Your investment options
If you’re a Mine Super member and want to see how your investment options have performed, you can find an overview of the latest investment returns for
super and
pension. You can also log
in to your
online account where you can see where your super is invested and make changes
if you wish.
Did you know? Investment fees and indirect costs of most investments options^ were reduced on 1 July 2021. These costs aren’t directly deducted from members’ accounts,
but deducted from the investment option’s earnings before the investment returns are calculated.
Turn to Mine
If you have any questions about our investment options or returns, you can reach us on 13 64 63, Monday to Friday, 8am to 6pm, or email
help@mine.com.au. We can also put you in touch with Mine
Super Financial Advice for additional support to help you decide what’s right for you. You can request an
appointment online or by contacting us.
^ Excluding Bonds and International Shares investment options.