Chief Executive Update 2022

22 August 2022

Financial Year 2021-22

At Super SA, our purpose is clear, to champion the financial well-being of South Australians. We always strive to empower our members so you can make the best choices for your future, while being there to support you every step of the way.

I'm Dascia Bennett, Chief Executive of Super SA. Today, I will talk about the end of financial year investment returns, and various ways we are working to deliver the best possible outcomes for our members.

Reflecting on our investment performance 

Over the past three years we have experienced the ongoing impacts of COVID-19 and a number of unprecedented global events. These factors have influenced market volatility, and impacted superannuation fund annual returns. Due to COVID, in 2019-20 we experienced negative annual returns with a record rebound in 2020-21.

Last year was exceptional, with high returns across many of Super SA's investment options. The Triple S Balanced option returned a record of 21.63%. In this financial year the performance has been disappointing, with all investment options except Cash showing negative returns.

End of year results

Most Super SA members are invested in the Triple S Balanced (untaxed) option which returned negative 6.39%. While negative returns are a normal part of investing and will occur from time-to-time, it can be concerning when markets have high levels of continued volatility. Financial markets were significantly challenged over the past 12 months and were impacted by a range of factors.

We continue to experience the impact of global political instability because of the war in Ukraine. Supply chain issues continue post COVID. We experienced higher than expected inflation and rising interest rates. The sharp increases in bond yields have led to a significant decline in bond prices. Equity markets are now reflecting the concerns of slowing economic growth worldwide, and the continued rise of interest rates increases the risk of recession.

All of these factors are impacting markets. It is difficult to see your super balance go down in the short term. However, it is important to remember that superannuation is a long-term investment. We are pleased to share that the 10-year average annual return of 8.27% for our Triple S Balanced option.

We continue to work closely with our investment partner Funds SA to ensure that Super SA investment options performed competitively and reach investment objectives in the long-term, typically over a five to ten year period. When looking at investment options and performance, it's important to consider your personal objectives and risk tolerance. Speak with a financial planner or seek professional advice to make sure that your super is working towards your retirement goals.

Delivering best member performances

Through member surveys and feedback, we continue to learn more about what's important to you. One achievement we are very proud of is our award-winning new website. The Super SA website is responsive, secure, easy to navigate, and always available to you. It includes additional tools and new resources like super calculators that you can take advantage of.

We also upgraded the member portal, adding an extra layer of security. This aligns with member expectations and supports Super SA's strong focus on cyber and information security. Member feedback tells us that many of you want your super to be invested in organisations that contribute positively to the environment and society. Super SA was recently awarded an ESG Leader Rating for 2022. This recognises our strong commitment to implementing environmental, social and governance principles, while having a track record of solid investment performance.

Super SA is moving towards going paperless, so I encourage you to opt in for online communications via the member portal.

Better super for all Australians

The superannuation industry is experiencing many changes which also impact Super SA members. This includes the increase of the superannuation guarantee contribution from 10 to 10.5% from 1 July 2022. The $450 monthly income threshold for super contributions has been removed, and this means greater access to super for all Australians.

Thank you 

For nearly 120 years, Super SA has been delivering superannuation to South Australian public service employees like you. Helping you live your best life in retirement is what we're passionate about. We offer a range of tools and resources online to help you make the most of your super. All of our member services are located here in South Australia. We welcome you to visit us in our member centre on Pirie Street.

Thank you for placing your trust in Super SA.

The information in the article above has been prepared in good faith by Funds SA. However, Funds SA does not warrant the accuracy of the information and to the extent permitted by law, disclaims responsibility for any loss or damage of any nature whatsoever which may be suffered by any person directly or indirectly through relying upon it whether that loss or damage is caused by any fault or negligence of Funds SA or otherwise. The information is not intended to constitute advice and persons should seek professional advice before relying on the information.