Why are returns down this year?

While super is a long-term investment and it’s important not to get too caught up in short term returns, it’s natural to be concerned about seeing negative returns - especially if you haven’t noticed this happening before.

Share markets have been volatile in 2022 and as a fund that excludes fossil fuels Future Super has faced some additional headwinds. Russia’s invasion of Ukraine sparked fossil fuel supply restrictions which have in turn caused fossil fuel stocks to do well. Since Future Super doesn’t invest in fossil fuels, we haven’t benefited from those companies’ performance.

Periods where markets are volatile are normal, and they are something Future Super plans for. You’ll see information in the Product Disclosure Statement, which outlines the goals and expectations of each investment option. The risk tolerance for Future Super products estimates at least 6 negative annual returns over any 20-year period. Those periods of negative performance are factored into our investment strategy for your super.

To give you some context about how Future Super has performed historically, our Balanced Impact option returned 5.11% since inception in 2014, Renewables Plus Growth delivered 4.06% since inception in 2018 and Balanced Index delivered 3.99% since inception in 2018.*

* Returns provided are after investment fees, percentage-based administration fees and taxes but before dollar-based administration fees have been taken out. Returns for periods of greater than one year are on a per annum compound basis. Return of capital and the performance of your investment in the Fund are not guaranteed. Past performance is not a reliable indicator of future performance.