BT’s 500,000 MySuper members have seen record returns for most members in the twelve months to 30 June, with returns as high as 25.6%, the strongest 12 month returns since BT’s MySuper options were launched in 2014 1
- 1 year - BT’s MySuper Lifestage 1970s – 1990s funds (representing 75% of members2) ranked in the top 10 for the year to June 2021, according to SuperRatings3
- 3 years – all of BT’s MySuper Lifestage funds have exceeded their medians over 3 years, according to SuperRatings4
- 5 years –BT MySuper Lifestage 1950s – 2000s funds have exceeded their medians over 5 years, according to SuperRatings3
- 10 years - BT’s MySuper Lifestage funds have all delivered in excess of their objectives over all periods out to 10 years.
BT’s Chief Investment Officer, Corrin Collocott said, "Our MySuper Lifestage funds’ performance can be attributed to the strong growth in listed shares and property as well as our underlying fund managers delivering above benchmark."
"When you consider the markets have not only weathered a global pandemic but also geo-political tensions regarding trade, a turbulent change of government in the USA, Brexit and the first recession in Australia in 30 years, this year demonstrates what can happen when investment managers stay on course," Mr Collocott said.
The past year has thrust retirement savings into the spotlight, not only because of the extreme volatility of markets at the outset of COVID-19 but also because of the government’s early access to super scheme.
Melinda Howes, Managing Director, BT Superannuation said, "It has been a difficult year for many Australians and withdrawing super is only used for exceptional circumstances, but this really seemed to turn a light on for people. We have seen an increase in member engagement, including requests for statements, performance, and login details. People are taking an active interest in their life-after-work savings."
"We are working hard to drive outcomes for members and the combination of our fee changes, announced in 2019 and our performance over 1,3, 5 and 10 years demonstrates this commitment," said Ms Howes
- 1st Quartile (top 25%) performance – for BT’s 1950s – 2000s MySuper Lifestage funds, twelve months to 30 June 20215. The 1940s fund is 2nd quartile (top 50%) for the same period.
- Between 25.1% and 25.6% returns6 - for BT MySuper Lifestage funds for members born in the 1970s, 1980s, 1990s and 2000s, twelve months to 30 June 2021
- Between 8.36% and 16.94% returns6 for BT MySuper members born in the 1940s, 1950s and 1960s performing well above their CPI+ objectives whilst also seeking to protect members from volatility with a lower allocation to growth assets
- BT’s 1980s Lifestage fund was the 5th highest performing MySuper fund in Australia over 12 months, and 10th ranked over 3 years according to Rainmaker’s most recent MySuper Default survey7
- Chant West Rated 4 Apples “High Quality Fund” 2021 – BT super fund investment capability8
THE YEAR AHEAD
“As we consider the next twelve months, we anticipate the policy environment will remain favourable for growth assets such as equities. Interest rates are expected to remain low for a considerable period of time and this will help the current economic recovery accelerate into the next phase,” Mr Collocott said.
"Ensuring vaccination rates continue to increase will be a key factor in building confidence amongst consumers and businesses. Higher vaccination rates will also limit the need for future ‘lock-down’ events which have characterised the impacts of this global pandemic."
"All this said, a repeat of the ‘outsized’ investment returns received over the past financial year would be unlikely. As a consequence, we still continue to diversify portfolios’ exposure to equity markets and keep our focus on the longer term," Mr Collocott concluded.
GETTING SUPER SORTED
It is always important to put money aside for life in retirement. However, over the last two financial years Australians made 4.6 million applications to access their super early as a result of Covid-19, and that adds up to a lot of retirement saving when you consider the strong returns some funds have made when markets rebounded. But the good news is small amounts put back into super today can make a big difference for life after work. For example, $25 a week can mean an additional $38,000 in retirement for a 40 year old.9
- Do a lost super search at the ATO - there’s still $13.8 billion dollars of lost super10 that is waiting to be claimed
- Consolidating your funds - you could have multiple funds from previous jobs and paying unnecessary fees
- Consider making your own investment choice if you’re in a default fund, depending on your individual circumstances
- Consider putting in a bit extra each pay, over and above what your employer pays
- Check that your employer is paying your extra 0.5% now that the super guarantee has gone up to 10%
1 APRA standard returns for BT’s MySuper Lifestage funds 12 months to June 30, 2021
2 Represents default membership for BT Super and BT Super for Life products
3 Super Ratings Fund Crediting Returns Survey (FCRS)Default Options Survey, June 2021
4 Super Ratings FCRS using ‘all fund’ universes, June 2021
5 Super Ratings Fund Crediting Returns Survey (FCRS) using ‘all fund’ universes, June 2021
6 APRA standard returns for BT’s MySuper Lifestage funds 12 months to June 30, 2021
7 Rainmaker – Selecting Super Workplace Super Performance tables 31 May 2021
8 Chant West Fund Rating 2021
9 Moneysmart retirement planner calculator. 40 year old earning $75K, with a $50K balance adding $100 per month = $402, 114 versus $363,563 difference $38,551
10 According to ATO, 30 June 2020
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