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

9 February 2023

NESS Super Continues to provide positive investment performance

NESS Super delivered positive returns for members in the December quarter with MySuper, Accumulation and Pension options all finishing in positive territory.

NESS MySuper option has returned +4.16% for quarter ending 31 December 2022 where majority of members are invested.

What has happened this Quarter

Share markets improved in the December quarter, reversing the negative share market returns in the September quarter. The Australian share market gained over 6%, global shares were up 3%, and A-REITs (Australian listed property) were up 8% for the quarter. Some economic indicators have shown early signs of moderating inflation whilst maintaining strong underlying economic conditions. The removal of China’s zero-covid policy was an additional positive for the market as it is expected to further reduce supply-chain challenges seen in 2022. Investors are expecting central banks to moderate rate increases through 30 June and then pause with possible reductions toward the end of 2023. The primary risks include stubborn inflation requiring higher interest rates through 2023 or a faster than expected slowdown with associated unemployment increases which could tip economies into recession.

Whilst this quarter’s performance is encouraging, 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. Russia’s war with Ukraine remains an ongoing geopolitical risk. There is a case for optimism as valuations have improved, supply-chain challenges are moderating, inflation is expected to moderate, and employment remains strong. NESS will benefit with improved investor sentiment.

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 relative protection should shares decline and will likely benefit on the upside.

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 2022. Fixed interest is paying 4%+ per annum and share valuations are pricing in returns between 8% and 10% over the next five year plus period.

NESS MySuper Option is designed to provide healthy high single-digit returns to members over time aiming to smooth the ups and downs of a market cycle by reducing losses and capturing gains when markets rise.

The NESS investment team has put recourses into positioning the portfolio to protect its members against risks to the global economy. 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 finished in positive territory for the quarter ending 31 December 2022. NESS Super MySuper option returned +4.16% with all other returning positive performance.

The MySuper investment option, over the last 19 years to 31 December 2022, has delivered average return of +6.78% since inception.

NESS Super has a strong track record 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 31 December 2022 

Investment Option Name3 Month FYTD1 Year3 Year5 Year10 Year
NESS MySuper Accum4.16%3.26%-4.08%3.84%5.49%7.28%

Choice investment option performance as at 31 December 2022 

Investment Option Name3 Month FYTD1 Year3 Year5 Year10 Year
High Growth Accum5.52%4.69%-5.70%4.93%6.67%9.24%
Stable Accum1.73%1.04%-5.18%1.56%3.14%4.48%
Australian Shares Accum8.12%8.95%-0.59%5.39%6.87%8.67%
Overseas Shares Accum4.02%2.67%-12.19%4.27%6.62%10.85%
Property Accum7.68%0.27%-19.23%-1.79%2.70%6.39%
Cash Accum0.39%0.63%0.76%0.45%1.03%1.64%

Pension investment option performance as at 31 December 2022 

Investment Option Name3 Month FYTD1 Year3 Year5 Year10 Year
NESS MyPension Balanced14.84%3.78%-4.52%3.96%5.14%7.67%
High Growth Pension26.43%5.44%-6.41%5.00%6.37%9.71%
Stable Pension31.90%1.09%-5.82%1.60%2.98%4.49%
Australian Shares Pension49.27%10.13%0.68%N/AN/AN/A
Overseas Shares Pension44.67%6.33%-10.16%N/AN/AN/A
Property Pension49.54%0.43%-22.73%N/AN/AN/A
Cash Pension0.45%0.74%0.85%0.47%1.20%1.88%

 

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.

 We’re here to help

For more information, contact our Member Services Team, Monday to Friday between 8.30am – 6.00pm (AEST/AEDT) on 1800 022 067 or email contact@nesssuper.com.au

Things you should know

The information contained in this article 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. For more information on NESS Super, or before deciding whether to acquire or hold a product, consider if it is appropriate.  See our Financial Services Guide (FSG), the relevant Product Disclosure (PDS) and the Target Market Determination (TMD).

 

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