Chief Executive Update1 September 2021
Financial Year 2020-21
It is our pleasure to present your Super SA annual statement for the 2020-21 financial year.
Challenges of a Pandemic
It has been more than a year since we first felt the effects of COVID-19 and we continue to grapple with the many challenges this once-in-a-century pandemic presents.
I would like to take this opportunity to thank our frontline members including doctors, nurses, police, ambulance officers and teachers for their role in keeping South Australians safe during this time.
Over the past year we have conducted considerable member research and focus groups to better understand your needs and expectations now and into the future. A clear theme communicated by our members is that you want us to build on the trust you have in the Fund. This supports our vision of being the most respected superannuation fund. We are committed to modernising our service offering so we continue to keep your trust.
As a result, we have delivered the following service initiatives to assist our members:
- Introduced a new, modern brand that respects our 118-year history and positions us to deliver the best member experience in an ever-changing superannuation landscape
- Introduced a new online education program with webinars that help educate our members on a range of topics designed to assist at every stage of the super journey
- Expanded our contact centre capability through technological advancements and additional consultants to support efficient service delivery
- Provided new financial advice options through Industry Fund Services including limited advice, which allows members to receive advice on investment choices at an affordable price (find out more here)1
- Strengthened our capability to protect member data by investing in improved cyber security
- Introduced new, modern, industry best practice service level agreements with our suppliers to ensure our operations are guided in the best interests of our members.
We are also currently refurbishing our Member Centre at 151 Pirie Street, Adelaide to provide a contemporary and personalised member experience.
In 2020-21, financial markets made an outstanding recovery. Our Triple S (untaxed) Balanced default option delivered its highest ever annual return of 21.6% for the financial year period to 30 June 20212..
Equity markets delivered strong returns driven by improving economic activity both in Australia and globally. The rollout of COVID-19 vaccinations has also lifted investor confidence as countries and economies gradually open up.
The Triple S (untaxed) Balanced default option continues to exceed its long term investment objective of 3.5% above CPI over an investment time horizon of 10 years, and would be placed in the top quartile for one and three year performance, based on a Chant West Multi-Manager survey of super funds with similar growth allocations3.
I am also pleased to advise that all of our investment options either met or exceeded their investment objectives for the financial year period ending 30 June 2021.
It has been an exceptional year however we are highly conscious of the market challenges ahead. In the coming years as we transition into a “new normal” world, there may be further challenges within investment markets. The fall in cash rates and bond yields to near zero levels will impact investing, and earning higher returns is going to be more challenging.
It is important to remember that superannuation is a long-term investment and our investment strategies continue to focus on long-term performance and managing risk. Diversification is the primary tool for managing investment risk. Together with fund manager Funds SA, the multi-asset class investment options will continue to be highly diversified to help shield members in times of market volatility.
Commonwealth Government Changes
Over the past year the Commonwealth Government has introduced a number of major legislative changes which will impact the superannuation industry. The most significant change which impacts Super SA members is the increase of the minimum Superannuation Guarantee (SG) Contribution rate from 9.5% to 10% from 1 July 2021. Because the minimum employer rate paid into your Super SA account is linked to the Commonwealth SG rate, you also benefit from the increase in contributions.
To all of our members, thank you for your continued support.
I also thank the Super SA Board and all staff for their dedication, integrity and commitment to our members.
Thank you for putting your trust in Super SA.
1 Limited advice is a single-issue advice matter that is more limited in scope than comprehensive advice.
2 It is important to remember that past performance should not be taken as an indication of future performance.
3 The Triple S Balanced investment option returned 21.6% for the year ended 30 June 2021 compared to the Chant West Growth (61-80%) Median of 18% for the same period.
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