Why long-term performance is a key factor for your super

High-performing super funds should focus on long-term results because super is a long-term investment. Ultimately what matters for a member is having enough money when they retire.

Superannuation is a big deal, not a one-year deal. As retirement savings are built over a lifetime, not a single year, it is important to keep a long-term perspective, amongst other things and balance both investment risk with investment returns.

QSuper’s diversified approach to investing aims for strong, long-term returns with less volatility risk, to protect members’ money from ups and downs. We target smooth delivery of investment objectives with a view that this is best placed to help members enjoy their best retirement.

Despite a second year of economic volatility, affected by the coronavirus pandemic, QSuper members enjoyed a smooth ride over the 2020-21 financial year.¹

Dealing with impacts of COVID-19

Getting on top of COVID-19 was the defining feature of the 2020-21 financial year.

The economic environment during the year affected a variety of investment assets, such as rises in equity and commodity prices and losses on assets like bonds and safe-haven currencies, which are designed to do well when equities perform poorly.

The developments produced a return of 13.7% for QSuper’s Accumulation account Balanced option, which exceeded the option’s objective of returns greater than CPI +3.5%.²

The importance of the long term

Because super is a long-term investment, not a one-year investment, it is important to view performance over the long term, not just a single year.

QSuper is an industry leader in long-term performance, which provides members confidence in the performance of their super when day-to-day markets may be experiencing the jitters.

How QSuper does it

QSuper’s unique investment strategy aims to balance risk and return through diversification. In other words, it seeks to deliver strong returns with fewer ups and downs to benefit members.

This unique “risk-balanced” investment strategy means a focus on risk allocation, not asset allocation.

What it means practically for members in QSuper’s default and other diversified options is investing across a wider range of assets, rather than a heavy reliance on the share market. These other asset classes include bonds, which tend to go up and down at opposite times to shares, as well as infrastructure, real estate, private equity, and alternative investments.

It’s an award-winning investment approach² that is different from that taken by most other superannuation providers.

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1. SuperRatings 2021 Smooth Ride award. The rating is issued by SuperRatings Pty Ltd ABN 95 100 192 283 AFSL 311880 (SuperRatings). Ratings are general advice only and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and SuperRatings assumes no obligation to update. SuperRatings uses objective criteria and receives a fee for publishing awards. Visit superratings.com.au for ratings information and to access the full report. © 2021 SuperRatings. All rights reserved.
2. Past performance is not a reliable indicator of future performance.
3. You can find out more about financial advice options at qsuper.qld.gov.au/advice or by calling us on 1300 360 750. QInvest Limited (ABN 35 063 511 580, AFSL 238274) is a separate legal entity responsible for the financial services it provides. Eligibility conditions and advice fees may apply. Refer to the Financial Services Guide (pdf) for more information