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

NESS Super Quarterly Investment Update – 31 March 2023

3 May 2023

NESS Super Continues to provide positive investment performance.

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

NESS MySuper option has returned +3.82% for quarter ending 31 March 2023 where majority of members are invested.

For financial year to date, the MySuper option has returned +7.2% to 31 March 2023.

What has happened this Quarter?

Share markets gained during the March quarter, extending their rally from the end of 2022. The Australian share market gained 3.3%, global shares were up 8.7%, and A-REITs (Australian listed property) were up 7.7% for the quarter. A range of economic data now suggests that inflation may have peaked in Australia, while economic conditions remain strong. Globally, markets were briefly thrown into turmoil during the quarter as bond volatility rose to its highest level since the Global Financial Crisis. To calm markets central banks reiterated that they have several tools to keep the baking system safe, however, noted that higher interest rates may still be required to tame inflation. Optimism is increasing that central banks are nearing the terminal interest rate, with possible reductions toward the end of 2023. Recession risk remains elevated.

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 is demonstrating good upside participation.

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 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. 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 March 2023. NESS Super MySuper option returned +3.82% with all other returning positive performance.

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 31 March 2023

Investment Option Name3 Month FYTD1 Year3 Year5 Year10 Year
NESS MySuper Accum3.82%7.20%0.87%9.61%6.45%7.18%

 

Choice investment option performance as at 31 March 2023 (Accumulation – applies to super members and Transition to Retirement)

Investment Option Name3 Month FYTD1 Year3 Year5 Year10 Year
High Growth4.46%9.35%-0.10%12.88%7.86%9.04%
Stable3.45%4.53%-0.09%5.10%3.89%4.59%
Australian Shares3.09%12.31%0.24%15.45%8.12%8.24%
Overseas Shares7.06%9.927%0.49%11.81%8.03%10.85%
Property0.20%0.48%-14.52%10.28%3.80%6.07%
Cash0.60%1.24%1.36%0.58%1.12%1.65%

 

Pension investment option performance as at 31 March 2023 (applies to Account-Based Pensions)

Investment Option Name3 Month FYTD1 Year3 Year5 Year10 Year
NESS MyPension Balanced4.43%8.37%1.24%11.14%6.33%7.62%
High Growth5.11%10.82%0.19%14.50%7.84%9.57%
Stable4.02%5.16%-0.04%5.68%3.86%4.66%
Australian Shares 13.51%13.99%1.66%N/AN/AN/A
Overseas Shares 18.20%15.05%4.02%N/AN/AN/A
Property 10.21%0.63%-16.08%N/AN/AN/A
Cash0.70%1.45%1.55%0.61%1.29%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.  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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