TWUSUPER delivers in 2020/21

TWUSUPER has delivered outstanding investment returns for the 2020/21 financial year.

For the year to 30 June 2021, the Fund’s Balanced (MySuper) investment option – which most members are invested in – delivered 18.98%, while the Fund’s Equity Plus investment option delivered an impressive 25.72%.

According to the Fund’s Chief Investment Officer, Ed Smith, the returns are partly the result of several changes to the Fund’s investment approach that have been made in recent times.

“There’s no doubt that investment markets have performed strongly over the past year. These returns have been further supported by some standout performances from the specialist managers engaged by the Fund, and by the effects of an investment restructuring program that started in early 2020,” said Mr Smith.

“We have made several major changes to the Fund’s investment portfolio over the past year – designed to better focus active management on those parts of the portfolio where we can add the most value, reduce investment costs, and better recognise the importance of Environmental, Social and Governance in our investment-making decisions.

“These changes have seen the Fund shift approximately a quarter of the Fund’s assets – around $1.5 billion – across several investment managers, with these changes representing the largest strategic and transactional investment activity the Fund has ever undertaken,” he said.

TWUSUPER’s recent investment activity recognises the increasing importance of Environmental, Social and Governance (ESG) considerations in investment decision-making. New investment mandates specifically exclude investment in companies involved in tobacco manufacturing, nuclear and civilian weapons manufacturing, and fossil fuel extraction such as thermal coal mining.

The Fund has also recently gained exposure to a range of cutting-edge industrial properties via a $90 million investment in the Charter Hall Industrial Property Fund. Warehousing sites include the state-of-the-art Woolworths Distribution Centre in Dandenong (Vic) located on 15.9 hectares, and the MidWest Logistics Hub located in Truganina (Vic) – close to completion, this 60-hectare site will be tenanted by leading businesses including Toll, Coles, Uniqlo and Bridgestone.

The Fund’s final investment returns for the year to 30 June 2021 for all investment options are as follows:

Account type Investment option  Year to 
30 June 2021
%
Super Balanced (MySuper) 18.98
Equity Plus 25.72
Cash Plus 0.37
Pre-retirement Super Pensions
(TTR)
Balanced 18.98
Equity Plus 25.72
Cash Plus 0.37
Retirement Super Pensions
(Pension Account)
Balanced 20.90
Equity Plus 28.43
Cash Plus 0.48

* Returns are net of fees and taxes. Past performance is not a guarantee of future performance.