Performance and Returns

Future Super doesn’t have a cash option, but many other funds do. During the market volatility around the start of the pandemic some people did choose to switch to cash. Unfortunately, research found that members in the averaged super balanced option who switched to cash in April 2020 would have lost up to 27% by July 2021.

We do allocate a portion of the portfolio to cash, and in certain situations the investment team could choose to allocate more to cash if it deems that as the most appropriate action.

If you’re considering options for your super, we recommend you seek personal financial advice before making a decision.

No strategic changes have been made as a result of recent negative returns and higher volatility in share markets. Future Super takes a rules-based approach to investment, which aims to deliver results over a longer term time horizon.

We continue to believe it is possible to invest in a way that has a positive impact on the world, and with ethics in mind, while also providing for our members’ retirements. 

After the surge in fossil fuel prices in 2022, there was some debate in the media about whether super funds could deliver great returns for members and act on climate change. 

Super is a long term investment. It’s designed to see you through your whole working life and into retirement. At Future Super, we believe the threat of climate change should be front of mind in our long-term investment thinking. We also believe in investing in a future that is worth retiring into.

Our screening work to protect you from harmful assets remains consistent, but this year it’s given us a performance edge. Thanks to our screens, we’ve been more heavily invested in the sectors that have performed the strongest this past financial year.

We screen out many of the big banks, locally and internationally, because they fund fossil fuel projects. And recently, performance for bank stocks has been held back by recession fears.

Utilities (like energy companies) were one of the weakest performing sectors globally*. Future Super’s screening approach paid off here too as we deliberately avoid investing in the vast majority of utilities companies due to their reliance on fossil fuels. 

This sector based advantage in our portfolio was backed up by earlier decisions to move some of our income assets into being inflation linked (known as floating rate). These are the sorts of decisions our investment team makes by constantly monitoring the markets on your behalf.

We want to invest for a better future - for the world and for our members. What these positive returns show is the power of doing both at the same time. 

*According to the MSCI World Index. Source: FactSet. 

See How We Invest for more information about our screening and investment processes, and what we mean by fossil fuel companies and investments.

All information provided is general in nature only and does not take into consideration your personal objectives, financial situation or needs. Please read the relevant Product Disclosure Statement, Target Market Determination and Financial Services Guide available at https://www.futuresuper.com.au/documents-and-forms/ and consider whether Future Super is appropriate for your needs before investing. We recommend you seek independent personal financial advice before investing.

Past performance is not a reliable indicator of future performance.

Future Super now allows members to split their balances across multiple investment options. Previously, we required members to choose one investment option - so that meant 100% of your balance was invested in the option you chose. Now we’ve rolled out the ability for members to split their super into multiple options. 

Here’s how you do it: log into your member online account and click on ‘Investment Options’. Then you will be able to select ‘Manage Investments’. From this page, you will be able to choose to put all your balance in one option or to split your balance between multiple options. 

You can choose your own allocation For example, you could put 50% in Renewables Plus Growth and 50% in High Growth or you could put 10% in High Growth and 90% in Balanced Index. It’s 100% your call! 

And remember, there’s still nothing wrong with just choosing one option and having 100% of your balance invested in it.

We’ve introduced this new ability to split your super because we are launching the High Growth option. A 90% allocation to growth assets, which is what the High Growth option offers, is very high! This means the option is higher risk. By giving members the option to only invest in a portion of their super in High Growth, members can have more control over how much risk they are taking on. 

The minimum portion of your balance you can allocate to an investment option is 5%.

FY22 was Future Super’s first year of negative returns since we launched in 2014.*

Even if you haven’t been with Future Super for a long period of time, whether you’ve seen your super returns go down before probably depends on how long you’ve have had a super fund for and how often you’ve looked at your balance.

The Australian and US share markets enjoyed a very buoyant period, where it was pretty rare for markets to be down by much,** from 2009 until the pandemic in 2020. It’s actually historically rare for markets to be so consistently up, and some experts consider that period the “longest bull market in history”. Between Australian shares and US shares, that’s a decent chunk of most super funds’ balanced options.*** That could be why you haven’t noticed a dip in returns before. But again, it’s so important to keep that long term perspective in mind.

*  Calculated by returns at the end of each financial year for each Future Super investment option since inception. Past performance is not a reliable indicator of future performance.

** https://www.smh.com.au/business/markets/the-longest-bull-market-in-history-ends-in-a-savage-sell-off-20200312-p549c0.html https://money.usnews.com/investing/term/bull-market

*** As per ASFA and APRA statistics. In the ASFA and APRA sources, MySuper options are considered balanced.

We’re keeping your money away from fossil fuel companies that are contributing to catastrophic climate change. By being a Future Super member, you are part of the divestment movement - a movement of investors using money for good and investing in a way that seeks to reduce climate change and inequality.

We invest in all different types of assets with superior environmental, social and governance (ESG) considerations. To give you an example, we have invested in the IIG Solar Asset Fund, a renewable energy investment that owns three large-scale solar farms - Swan Hill, Chinchilla and Brigalow.  Those solar assets are an example of investing in assets that aim to contribute to our overall performance while at the same time building clean energy solutions.*

When markets go down it can be a buying opportunity. And so, whilst it might be scary to see a graph go down, another way of thinking about this is it can be an opportunity to benefit from buying assets when they’re cheaper.

*  Future Super has exposure to these assets through its investment in the IIG Solar Impact Fund. Members invested in the Future Super Balanced Impact and Future Super Renewables Plus Growth options have exposure to the IIG Solar Impact Fund. Members in the Future Super Balanced Index option do not have any exposure to this investment.

Information provided is of a general nature only and we have not taken your personal financial objectives, situation or needs into account. You should consider whether Future Super’s products are right for your individual objectives and needs and seek personal financial advice. Before making a decision to acquire, hold or continue to hold an interest in Future Super, please read the PDS and check our Target Market Determination (TMD) available at https://www.futuresuper.com.au/documents-and-forms/. Future Super does not accept any responsibility for any loss or damage that may result from reliance on, or the use of, any information contained on this site. The contents of this website are exclusively owned by Future Super.  You must not use or disclose them for any other reason than for the purposes for which they were supplied.

Read about our most recent returns here.

When we launched in 2014, Future Super was the first super fund to not invest in fossil fuel companies and remains the only super fund to screen out diversified fossil fuel companies and companies providing significant services and financing to the fossil fuel industry.

At Future Super we use a three-step process to ensure your money is invested in companies that can both grow your super savings and build a better world. You can see our full screening strategy here.

First, out with the bad: our negative screen rules out harmful and destructive industries like fossil fuels, detention centres, live animal export, nuclear, tobacco and more.

Second, in with the good: our positive screen ensures we actively seek out companies that are doing social and environmental good, such as renewable energy, healthcare, education and IT. You can view a full list of the companies we invest in here.

Finally, our team look for positive industries like solar farms and other impact investments to add to the portfolio. Our renewable energy portfolio includes the Bald Hills Wind Farm in Victoria and the Lake Bonney battery in South Australia.

Future Super has four investment options: Balanced Index, Balanced Impact,Renewables Plus Growth and High Growth. You can find a handy snapshot of our investment options on our website here.

All the details you need to make an informed decision about our products can be found in our Product Disclosure Statement, Target Market Determination, Additional Information Booklet, Insurance Guide and Financial Services Guide.

If you’re unsure about whether one of these options is suitable for you, you should seek financial advice to ensure you are making an informed choice based on your own financial objectives, situation and needs.

Financial markets have been volatile over the last few years. Russia’s invasion of Ukraine, fossil fuel prices temporarily surging and inflation have all been important issues for our investment team to navigate on your behalf. We’re proud to let you know that despite these headwinds, we’ve delivered strong results for you over the last financial year. 

Future Super’s Balanced Index option ranks among the top Balanced Options in the country for the last Financial Year, based on the SuperRatings SR50 Balanced Survey. 

All of our options performed well over the last year.

• Balanced Index returned 10.5% for FY23 and 4.1% for the June quarter. That puts it among Australia’s top 5 sustainable balanced options over 1 year, as measured by SuperRatings, significantly outperforming the SuperRatings median Balanced investment option return of 8.5% for the year.

• Renewables Plus was also a top performing option, delivering 9.7% for FY23, also significantly outperforming the median option in its category.

• Members in Balanced Impact saw strong returns of 8.5% over the financial year and 2.5% for the last quarter alone. 

See Performance & Returns for the latest performance of each of our investment options.

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.