Aware Super of Australia Has “Good News”
Posted on 08/11/2023
Aware Super says “Our FY23 results are in, and it’s good news for many of our members.” CIO Damian Graham said 1 year returns are 10.7%, 5 year returns are 7.6%, and 10 year returns are 9.3% per annum.
Graham said: “It’s been a positive year for most members and their Super balances. Most of our members under the age of 56 have their money invested in our Future Saver high growth option, which has returned approximately 10.7% for the year. We’re really pleased with this double digit return, which is above the long term average of 9% over the past ten years. Meanwhile, members in our most popular retirement income account option, the Conservative Balanced option, saw returns of approximately 7.6% for the year, which is also above the average annual return for this option. Although a little lower in comparison to the high growth option, it reflects the approach our retired members prefer to take towards risk. The Conservative Balanced option is designed so that when share markets fall, it falls by less. Which generally means smoother, more stable returns.”
Graham then made a recession call: “Looking ahead, there are some key things we’re monitoring. We’re seeing signs of inflation coming down and over time, we should see interest rates control this further. The goods and services like housing, education and health care, the slower to steady in price could see inflation continue. So we might still see some rate rises over the next year. We know a slowdown in the economy is coming. That’s the intended goal of the central banks.”
Graham also warned pensioners, “Your returns will differ month to month and year to year. Although this can be really unsettling, it’s a perfectly normal part of investing.” Graham mentioned cycles, and the way “short term returns even out over time.”
