NESS Quarterly Investment Update – 31 December 2024
NESS SUPER CONTINUES TO PROVIDE STRONG INVESTMENT PERFORMANCE AND DECLARES 10.74% FOR THE 2024 CALANDER YEAR FOR MYSUPER
The NESS My Super option return is 2.09 % for the quarter ending 31 December 2024 and 10.74% for the 2024 calendar year extending the strong start for the 2024/25 financial year in which most members are invested.
All NESS Super Choice options had good returns for the December 2024 quarter although the Australian share markets declined while international share markets provided strong returns. Performance was primarily driven by overseas shares with the accumulation option returning 7.65% for the quarter.
MySuper investment option performance as at 31 December 2024
| Investment Option Name | 3 Month (%) | FYTD (%) | 3 Year (%pa) | 5 Year (%pa) | 10 Year (%pa) |
| NESS MySuper Accum | 2.09 | 6.25 | 5.40 | 6.45 | 6.96 |
Accumulation Choice investment option performance as at 31 December 2024
| Investment Option Name (Accumulation) | 3 Month (%) | FYTD (%) | 3 Year (%pa) | 5 Year (%pa) | 10 Year (%pa) |
| High Growth | 2.63 | 7.41 | 6.48 | 8.14 | 8.62 |
| Stable | 0.85 | 4.19 | 2.68 | 3.64 | 4.36 |
| Australian Shares | -0.66 | 6.17 | 7.01 | 7.61 | 8.32 |
| Overseas Shares | 7.65 | 10.26 | 8.75 | 10.67 | 10.24 |
| Property | -5.67 | 5.87 | 0.07 | 3.29 | 6.52 |
| Cash | 0.98 | 1.97 | 2.56 | 1.65 | 1.79 |
Although all Choice investment options performed well, Stable and Cash options did not meet its CPI + objectives due to rapid rise in inflation during 2023/24.
It is expected that as the inflation moderates, the performance against the CPI +objective will improve.
What has happened this quarter?
Australian shares declined over the quarter returning -0.81%, while international share markets provided strong returns in AUD of 12.12%, partly thanks to a weakening Australian Dollar. Australian GDP growth disappointed in the December quarter, causing corporate profits to shrink, and business confidence turn negative, contributing to the selloff in the Australian share market.
Australian ten-year government bond yields rose 38 bps over the quarter, ending December at 4.37%, which is 20 bps below levels seen in the US.
The RBA has held rates steady since raising its cash rate to 4.35% in November 2023, citing stickier inflationary pressures as a concern.
Near-term outlook
While the near-term economic outlook remains uncertain, economist and market participants are gaining confidence in the path walked by the Reserve Bank of Australia (“RBA”). Headline CPI inflation fell modestly in the December quarter reaching its lowest rate in three years. The decline was thanks to a fall in underlying pricing for electricity, fuel and a moderation in new dwellings price rises.
While the RBA has held the cash rate steady through 2023 at 4.35%, markets and economists are growing in confidence over the path ahead. Latest futures pricing suggests the central bank will move to cut rates either at the upcoming February or April 2025 meetings. The path of a hard landing in the Australian economy appears to be all but avoided, with the fears over a Recession falling aside. Markets are expected to remain volatile to start 2025 as impacts from a change in regime in US politics continues to play out.
Throughout 2024, half of the world’s population across more than 70 countries participated in national elections, artificial intelligence gained considerable traction in the marketplace, and several central banks initiated a synchronized interest rate-cutting cycle. Each of these developments alone creates a complex landscape for investors to navigate. Yet, the situation is further complicated by heightened geopolitical risks. The medium-term outlook warrants continued monitoring both globally and locally as Australia trends towards the upcoming Federal election in 2025.
Pension investment option performance as at 31 December 2024
| Investment Option Name | 3 Month (%) | FYTD (%) | 3 Year (%pa) | 5 Year (%pa) | 10 Year (%pa) |
| NESS MyPension Balanced1 | 2.37 | 7.07 | 6.14 | 7.07 | 7.13 |
| High Growth Pension2 | 2.93 | 8.36 | 7.23 | 8.81 | 9.08 |
| Stable Pension3 | 0.98 | 4.85 | 3.00 | 4.00 | 4.36 |
| Australian Shares Pension4 | -0.80 | 6.81 | 7.20 | N/A | N/A |
| Overseas Shares Pension4 | 8.43 | 11.77 | 10.89 | N/A | N/A |
| Property Pension4 | -6.38 | 6.34 | -0.22 | N/A | N/A |
| Cash Pension | 1.11 | 2.23 | 2.91 | 1.85 | 2.05 |
| My Income Pension5 | 0.40 | 2.91 | N/A | N/A | N/A |
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.
- Prior to 1 February 2021, the MyPension Balanced investment option was the Moderate investment option.
- Prior to 1 February 2021, the High Growth investment option was the Aggressive investment option.
- Prior to 1 February 2021, the Stable investment option was the Conservative investment option.
- New investment options introduced on 1 February 2021.
- My Income Pension option introduced on 1 July 2024.
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/pds to view our Financial Services Guide (FSG), the relevant Product Disclosure Statement (PDS) and the Target Market Determination (TMD).
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