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Outstanding CFS pension returns help members stay on top of inflation
06 February 2025
5 min read
CFS harnessed the wave of investor confidence in 2024 to deliver strong returns for a range of popular pension investment options for the calendar year to 31 December, leaving inflation in their wake.
FirstChoice pension members benefited from outstanding returns during the calendar year to 31 December 2024. Some of our biggest pension investment options topped our own industry-leading returns for the12 months to 30 June to generate returns that were well above the average for 2024^.
CFS FirstChoice Growth and Moderate investment options achieved strong double-digit growth over the calendar year 2024, reflecting the buoyant performance of most investment markets despite a higher inflation environment and increased market volatility.
The CFS FirstChoice Growth and CFS FirstChoice Moderate investment options topped our own industry-leading returns for the 2023-24 financial year by around 2%**.
These returns were also well above the Reserve Bank of Australia’s preferred measure of inflation, which came in at 3.2% for the 12 months to December*, leaving members with more cash in their pocket in real terms.
CFS FirstChoice Moderate the top ranked balanced pension option for 2024
CFS FirstChoice Moderate was also the #1 ranked balanced pension investment option, according to data from independent research house Chant West for the year to 31 December 2024^.
- 14.8% CFS FirstChoice Growth - calendar year 2024
- 12.0% CFS FirstChoice Moderate - calendar year 2024
‘Unusually strong’ investment returns may normalise going forward
The results were well above the average calendar year returns of 8% recorded for growth pension funds and 6.5% recorded for balanced pension funds over the past decade#, according to CFS Chief Investment Officer Jonathan Armitage.
Jonathan attributed the outstanding results to the ability of our highly experienced investment team to leverage the strength of global and local share markets while actively managing risk and continuing to diversify investment portfolios in a volatile market.
“These results are a testament to the experience and capability of CFS’ investment team and also reflect strong growth in some investment markets, such as global shares,” he said.
“We’ll continue to actively manage risk and diversify our investment portfolios in the year ahead.”
He said investment markets had been unusually strong in 2024, and growth could be expected return to more usual levels.
“It’s likely investment returns may normalise as we go forward,” he said.
What drove such strong returns in 2024?
Global shares led the way in 2024, achieving impressive double-digit growth. This was followed by significant gains in emerging markets and solid returns in both Australian shares and global listed infrastructure.
“Global shares surged by just over 30% in 2024, while domestic shares saw robust growth of 11.4%,” Jonathan said.
“Financials such as banks and technology played a crucial role in this growth, with companies like Nvidia benefiting from the generative AI boom.
“Additionally, there was a broadening of share market performance, with small companies performing exceptionally well and emerging markets rebounding strongly with returns of around 18% last year.”
What should I do if I’m concerned about my investments?
If you’re wondering about whether you should make changes to your investments, we recommend connecting with your financial adviser to review your investment goals, identify any potential opportunities, and make changes if necessary.
A more conservative investment approach that includes a higher ratio of defensive assets such as fixed interest and cash may result in lower returns than a higher-risk, growth-focused strategy.
Learn more on our website. If you'd like help with your pension investment strategy, book a free consultation with our guidance team..
What’s next?
* 3.2% Consumer Price Index year-ended percentage change (seasonally adjusted trimmed mean) at December 2024.
^ Chant West Pension Fund Performance Survey December 2024. Returns are net of investment fees for the year to 31 December 2024.
Chant West median growth return for the year to 31 December 2024 was 12.2% for pension investment options with 61-80% allocation to growth assets.
Chant West median balanced return for the year to 31 December 2024 was 9.8% for pension investment options with 41-60% allocation to growth assets.
** CFS tops pension rankings for 2023-24 for pension performance
# Chant West median growth pension return over 10 years to 31 December 2024 was 8.0%. Chant West median balanced pension return over 10 years to 31 December 2024 was 6.5%.
Past performance is no indication of future performance.
Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) is the trustee of the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557 and issuer of FirstChoice range of super and pension products. This document may include general advice but does not consider your individual objectives, financial situation, needs or tax circumstances. You can find the Target Market Determinations (TMD) for our financial products at www.cfs.com.au/tmd, which include a description of who a financial product might suit. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully, assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision. You can get the PDS and FSG at www.cfs.com.au or by calling us on 13 13 36.