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Future Super delivers double-digit returns for members in FY24

5 July 2024

#Performance

Future Super is proving that responsible investing can deliver for members this year. Our Balanced Index option has returned 10.1% over the past 12 months, compared to the median balanced super fund return of 8.8%*.

It’s great news for our members, who’ve given their super balance a bigger boost by keeping it out of harmful industries. There are several reasons for this, including the decline of fossil fuels.

Future Super’s Executive Director of Investments Sharon Davis said: “Our returns are built on a foundation of responsible investing, avoiding fossil fuel companies means we have more space to embrace other, growing sectors like tech, AI, health and renewable energy. Locally, the fossil fuel sector was not a strong performer this year, while globally the technology sector, benefitting from the AI boom, performed exceptionally well.” 

Fossil fuels are a drag

The fossil fuel intensive energy sector in Australia (including companies like Woodside and Santos) underperformed the ASX300 this financial year, with the sector returning -1.0% while the ASX300 returned 11.9%.  

This continues a long-term trend. Last year, the Institute for Energy Economics and Financial Analysis released research showing that fossil fuel companies have been dragging down share markets for as long as 10 years.

As governments and companies meet net zero commitments, this global trend is set to continue over the long term. By screening out fossil fuels, Future Super members stand to benefit from the global movement towards decarbonisation.  

Riding the AI boom

Nvidia was one of the darlings of the AI trend, with its share price booming throughout the year. Future Super’s screening approach means that we allocate more than the benchmark to growth sectors like tech and companies like Nvidia, helping members benefit from the strong performance of the technology sector.  

Meanwhile, energy stocks – a sector made up of many fossil fuel companies, which Future Super screens out – were a drag on performance for ASX investors. This year, our members benefited from not being invested in those companies.  

*SuperRatings estimates the median return for balanced investment options for financial year 2023-24 is 8.8%.

Returns are not guaranteed and past performance is not a reliable indicator of future performance.

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