News

FUND DETAILS     USI: NES0100AU     ABN: 72 229 227 691     ADDITIONAL INFORMATION

How your super performed to 30 June 2022

2 August 2022

How your Super performed to 30 June 2022

As you may have already heard in the media; most superannuation funds have declared negative returns for the 2021/22 financial year.  Unfortunately, we are also declaring negative returns for most of our investment options for the full year to 30 June 2022.

The current economic environment that all superannuation funds find themselves in with rising interest rates, geopolitical issues, increasing energy costs, and cost of living increases has created the settings which have resulted in the negative returns.

These external economic factors have all contributed to the Fund’s negative return, but it should be noted that the NESS MySuper investment option has only declared five (5) negative returns over the past 32 years including the year ended 30 June 2022.  Over the same period, the long-term return was 7.69% pa over a rolling 32-year period which is net of tax, fees and investment expenses.

If these same economic events listed above change (e.g., inflation subsiding, Russia withdrawing from Ukraine and energy costs reducing) then the elements that created these negative returns could just as easily usher in a new positive returns cycle.

It is important to remember that superannuation is a long-term investment and performance should be considered over the longer term. Whilst it is unsettling to see short term negative returns it is expected that there will be negative returns from time to time. As of 31 July 2022, the Fund’s investment returns have returned to a positive position.

 

Performance to 30 June 2022

Whilst the NESS MySuper investment option declared a record return of 19.65% for the 2020/21 financial year, the return for the 2021/22 financial year is -3.77%.  The median MySuper return for the 2021/22 financial year based on the Super Ratings surveys was -5%[1].

Over the longer-term, the return for the NESS MySuper investment option was 7.85% pa over a 10-year period.  Our returns to 30 June 2022 for each investment options are shown in Tables 1 and 2 below.

 

Table 1 – Super and Transition to Retirement (TTR)

Investment Option1 Year3 Year (pa)5 Year (pa)7 Year (pa)10 Year (pa)
NESS MySuper[2]-3.77%4.32%5.70%5.91%7.85%
High Growth-5.32%5.36%6.93%7.16%9.91%
Stable-4.36%2.09%3.44%3.75%4.92%
Australian Shares-4.80%4.25%6.50%6.97%9.22%
Overseas Shares-9.48%5.95%7.32%7.32%11.60%
Property-9.45%-0.94%4.05%5.63%7.19%
Cash0.13%0.40%1.02%1.29%1.75%

Past performance is not a guarantee of future performance. Super member investment returns and Account Based Pension (ABP) investment returns differ as Account Based Pension investment returns are tax free.

 

Table 2 – Account Based Pension

Investment Option1 Year3 Year (pa)5 Year (pa)7 Year (pa)10 Year (pa)
NESS MyPension Balanced[3]-4.24%4.33%5.30%5.66%8.28%
High Growth[4]-6.13%5.40%6.63%7.26%10.44%
Stable[5]-4.85%2.10%3.21%3.51%4.95%
Australian Shares[6]-4.59%N/AN/AN/AN/A
Overseas Shares[7]-9.98%N/AN/AN/AN/A
Property[8]-12.55%N/AN/AN/AN/A
Cash0.11%0.45%1.18%1.49%2.00%

Past performance is not a guarantee of future performance. Super member investment returns and Account Based Pension (ABP) investment returns differ as Account Based Pension investment returns are tax free.

 

The Growth of your balance over the long term

Table 3 below shows how much a $100,000 super balance would grow over 1, 3, 5, 7 and 10 years to 30 June 2022, if you were invested in the NESS MySuper (default) investment option.

For example, if you started with a balance of $100,000 on 1 July 2012, after 10 years on 30 June 2022, your super balance would grow to an amount of $212,912.

 

Table 3

Years to 30 June 2022        Returns % pa             Value[9]        
1-3.77%$96,230
34.32%$113,527
55.70%$131,939
75.91%$149,471
107.85%$212,912

Returns are not guaranteed and past performance is not a reliable indicator of future performance

The Fund has performed well this financial year relative to its own internal investment benchmarks however these returns are still negative which we are determined to improve as soon as possible.

 

Fee reductions

NESS Super prides itself on looking after our members and this can be evidenced via the fee reductions that all members received from 28 May 2022. These fee reductions are aimed at enhancing member benefits and helping members retire with the best possible retirement outcome which is the most important part of our mission.

Depending on which investment option you have invested in, many members had on average a 30% fee reduction. Members with larger account balances will benefit from the newly introduced fee cap which means that the larger your account balance, the lower your overall fees become.

 

Financial Planning Services

During the past 12 months, NESS Super introduced financial planning services which many members have either used or are currently using. Our financial planning services allow members of all ages to get personal tailored advice relating to their own circumstances to help you maximise your superannuation and retirement benefits and where possible, Centrelink benefits.

Again, this shows our commitment to helping members get the best possible outcomes for themselves.

If you need financial advice, book an appointment with Hernan Reyes through our Member Services Team. Hernan is authorised to provide advice on various topics with NESS Super.

 

It is your Choice

I would also take this opportunity to thank you for using NESS Super as your super fund. We will continue to work hard to earn the right to keep managing your money.

We believe our member services, insurance offerings, fees and costs members pay, and our great long-term returns will mean your retirement is in good hands with NESS Super.

 

We are here to help.

If you have any questions, you can contact our Member Services Team, Monday to Friday between 8.30am and 6.00pm (AEST/AEDT) on 1800 022 067 or email us at contact@nesssuper.com.au.

Yours sincerely

Paul Cahill
Chief Executive Officer (CEO)

 

Things you should know

This communication is issued by NESS Super Pty Ltd ABN 28 003 156 812 AFSL 238945,  trustee of NESS Super (the Fund) ABN 72 229 227 691.

The information contained in this communication is current at the time of its publication. However, some information may change over time.  The content is for general information only and does not constitute personal advice.  We recommend that you consult with a suitably qualified person before making any financial decisions.  Before deciding whether to acquire or hold a product, consider if it is appropriate for you.  For more information on the Fund visit our website nesssuper.com.au/pds to view our Financial Services Guide (FSG), the relevant Product Disclosure Statement (PDS) and the Target Market Determination (TMD).

Past performance is not a guarantee of future performance.

[1] For details on Super Ratings Pty Ltd surveys refer to www.superratings.com.au. Past performance is not a reliable indicator of future performance.

[2] The NESS MySuper investment option was formerly called the Balanced investment option

[3] Prior to 1 February 2021, the MyPension Balanced investment option was formerly called the Moderate investment option.

[4] Prior to 1 February 2021, the High Growth investment option for account-based pension was formerly called the Aggressive investment option.

[5] Prior to 1 February 2021, the Stable investment option for account-based pension was formerly called the Conservative investment option

[6] Australian Shares investment option was introduced to account-based pension accounts on 1 February 2021

[7] Overseas Shares investment option was introduced to account-based pension accounts on 1 February 2021.

[8] Property investment option was introduced to account-based pension accounts on 1 February 2021.

[9] The values calculated are estimated values and assumes you start with a balance of $100,000 and interest is compounded annually on 30 June.  The returns used are the returns applicable to the NESS MySuper investment option as shown in Table 1.  The returns are net of tax, fees and investment expenses.

 

8

Back to News