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

Quarterly Investment Update – June 2023

28 July 2023

NESS Super continues to provide positive investment performance.

NESS Super delivered positive returns for members in the June quarter for all options except the Property Pension options.

NESS MySuper option has returned +2.22% for quarter ending 30 June 2023 where majority of members are invested.

For financial year to date, the MySuper option has returned +9.58% to 30 June 2023.

 

What has happened this Quarter

Share markets posted strong gains for the June quarter, extending their rally from the end of 2022. The Australian share market gained 1%, global shares were up 7%, and A-REITs (Australian listed property) were up 3.4% for the quarter. Inflation continues to moderate while the economy remains resilient, and the risk of recession has reduced. Globally, shares recovered after fears of U.S. regional bank contagion in March subsided. Central banks have signaled we are closer to terminal interest rates which has resulted in higher share prices.

As mentioned above, the MySuper option returned +9.58% for the financial year. The fund remains diversified across a variety of different asset classes and return drivers to balance the risk and return in a challenging environment. MySuper will provide some protection should shares decline and is demonstrating good upside participation, but a negative return is possible from time to time as markets react to news.

Near-Term Outlook

We expect volatility will continue until inflation moderates toward 3% and the economic backdrop remains stable. Higher energy prices, food prices, and interest rates are placing some strain on consumers. Higher mortgage rates in Australia are placing some households in greater financial stress. Should inflation continue to moderate, and employment remain close to full, markets should react positively.

Long-Term Return Prospects Strong

With improved valuations and interest rates for investors, the medium-to-long term investment outlook has improved substantially over the course of the financial year. Fixed interest is paying 4%+ per annum and share valuations are pricing in returns between 8% and 10% over the next five-year period. The NESS MySuper Option is designed to provide high single-digit returns to members over time whilst aiming to smooth the ups and downs of a market cycle by reducing losses and capturing gains when markets rise. Whilst downside protection over short-term time periods is important, growth assets will eventually trend upward and capture better long-term returns than fixed income or cash holdings.

Investment option performance

All Accumulation and pension investment options except the Property Pension option finished in positive territory for the quarter ending 30 June 2023.

NESS Super has a strong history as a top performing super fund. The NESS MySuper option ranks in the median quartile in Super Ratings survey over the 3,5, and 10.

 

MySuper investment option performance as at 30 June 2023

 

Investment Option Name3 Month FYTD3 Year5 Year10 Year
NESS MySuper Accum2.229.588.065.887.23

 

Choice investment option performance as at 30 June 2023

 

Investment Option Name3 Month FYTD3 Year5 Year10 Year
High Growth Accum3.1712.8210.637.249.09
Stable Accum0.615.173.583.384.51
Australian Shares Accum1.8114.3411.546.738.63
Overseas Shares Accum6.3416.8811.198.4710.55
Property Accum2.272.766.092.476.14
Cash Accum0.762.010.821.061.61

 

Pension investment option performance as at 30 June 2023

 

Investment Option Name3 Month FYTD3 Year5 Year10 Year
NESS MyPension Balanced12.0510.599.115.887.52
High Growth Pension23.1614.3212.067.429.51
Stable Pension30.045.203.713.474.51
Australian Shares Pension40.4214.47N/AN/AN/A
Overseas Shares Pension45.9121.85N/AN/AN/A
Property Pension4-1.67-1.05N/AN/AN/A
Cash Pension0.892.350.891.251.85

 

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.
1. Prior to 1 February 2021, the MyPension Balanced investment option was the Moderate investment option.
2. Prior to 1 February 2021, the High Growth investment option was the Aggressive investment option.
3. Prior to 1 February 2021, the Stable investment option was the Conservative investment option.
4. New investment options introduced on 1 February 2021.

 

Things you should know

This publication has been issued by NESS Super Pty Ltd ABN 28 003 156 812 AFSL 238945 (the Trustee), as trustee of NESS Super ABN 72 229 227 691 (The Fund).

Investment returns are not guaranteed. Past performance does not guarantee future returns.

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) to view our Financial Services Guide (FSG), the relevant Product Disclosure Statement (PDS) and the Target Market Determination (TMD).

 

 

 

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