CFS delivers double-digit returns with one of the lowest admin fees

Strong returns saw CFS outpace other super providers despite challenging market conditions this financial year.  

• Members received double-digit returns that exceeded the industry median 
• This was testament to the depth and capability of our new investment team 
• We’re positioned to capitalise on opportunities to continue delivering outstanding value  
• Additionally, we offer one of the lowest admin fees in the market^. 
   

Strong investment results for the year ending 30 June 2023 demonstrated the revitalisation of our investment approach after bolstering our team of industry-leading talent and adding new capability.

Headlining our performance, the FirstChoice Employer Super (Lifestage 1965-69) balanced investment option returned 10.5%, with the growth option (Lifestage 1975-79) delivering 12.2%.  

Both options outperformed, according to SuperRatings, which found the median balanced super option delivered an annual return of 9.05% to 30 June 2023, with growth delivering an annual return of 11.16%.*

The good news extended across all members between the ages of 28 and 57, invested in FirstChoice Employer Super Lifestage investment options, with all receiving double-digit returns.

We’re pleased to deliver these results to members to help them towards achieving financial freedom. Additionally, we offer one of the lowest admin fees in the market as independently verified by Chant West^.

CFS Chief Investment Officer, Jonathan Armitage, said:

What contributed to the positive results?

Part of our investment philosophy is to actively manage the money members entrust us with. This means we track the performance of investments and adjust to take advantage of opportunities and steer away from potential obstacles.

A major driver of our returns for this year was global equities (or shares). We actively chose to invest in global equities which delivered significant results to boost our overall returns.

Jonathan said the rally in global equities had a lot to do with artificial intelligence (AI) and its impact on NASDAQ (US stock exchange) stocks like Nvidia and Microsoft, adding the NASDAQ was up around 35% year to date, signalling how important the AI story had been for performance. 

Australian shares also performed well, with Jonathan acknowledging partnerships with BlackRock and international bond managers as a contributing factor to our performance.  

Also contributing to our results is we have limited investment in unlisted assets in comparison to some other super providers who have significant holdings. Unlisted assets are property, infrastructure and other investments that are not traded on a stock market.  

In recent weeks, a number of funds have undertaken new valuations of these investments which has seen a drop in the price and impacted returns. Learn more about unlisted assets. 

Where to from here?

We’re seeing unprecedented global events and situations we haven’t experienced for decades. All of which impact investments. Events such as the pandemic and the war in Ukraine drove changes such as increasing interest rates, supply chain disruption, and inflation – plus, unpredictable fluctuations in markets. And conditions will continue to change. 

In response, Jonathan said:

As we’ve built out our expertise and capability, we’re in a position to continue delivering good performance for our members even in unpredictable times. 

Moving into this new financial year, CFS is in the enviable position of having liquidity to be nimble and take advantage of the opportunities the market is presenting.

As far as what this year holds, Jonathan said volatility is creating exciting investment opportunities, specifically in fixed-income, unlisted infrastructure, and unlisted real estate. 

Read the media release.

^ Chant West Super Fund Fee Survey as at 31 March 2023 for MySuper products based on $50,000 account balance. 

* SuperRatings Fund Crediting Rate Survey – June 2023. Past performance is no indication of future performance.