Investments update - Oct 2022

Many global and local events resulted in investment markets being highly volatile during 2021/22 with inflation and interest rates being significant influences. After last year, which saw one of the largest share market rallies on record (indeed our MySuper option had a record return of 17.0%), the Russia-Ukraine war, China’s Covid-zero policy and rising inflation and interest rates globally have resulted in market value falls across all global investment markets.

For example, broader US markets fell by -12.0% in 2021/22 with the technology-heavy NASDAQ falling -24.0%. Falls in the value of major Australian companies were less pronounced with the ASX 300 retreating by -7.0%. Smaller companies fared much worse, with the ASX small companies index falling -20.0% to 30 June 2022.

legalsuper’s portfolios were impacted by these negative market movements in 2021/22, however, members' savings were protected through a combination of our continued commitment to active management and resulting downside protection measures.

In 2021/22 our MySuper balanced option, where most members are invested, was the fifth highest performer according to SuperRatings, returning -0.98% for the year, placing it 2.84% above the SuperRatings all fund median of -3.82%. This outcome continued a long-term trend of out-performance against the SuperRatings all fund median over 3, 5 and 10 year time-periods delivering returns of 4.98% p.a., 6.18% p.a., and 8.31% p.a. respectively. 

A further reason for strong performance in 2021/22 was further reductions in investment fees across most investment options despite rising inflation. Since July 2021, MySuper fees reduced 2.0% in 2021/22 which was in addition to reduction in the prior year of 14.0%.