Returns rise above 10% in 2023
Gains exceeded 10 per cent across most options in 2023 in a year of excellent performance, explains Ed Tomlinson.
Most smartMonday investment options, including the most popular choices among members, returned more than 10 per cent by the end of calendar year 2023.
This included 14.4 per cent for our High Growth – Index option (above high growth options’ industry median return of 12.9 per cent according to SuperRatings) and 12.8 per cent for our Growth – Index option (higher than the 11 per cent median return for growth options reported by SuperRatings).
We recorded gains of 11.1 per cent for Balanced Growth – Index and 10.1 per cent for Balanced Growth – Active. These results were above balanced options’ industry median return of 9.6 per cent according to SuperRatings.
Our dedicated International Shares – Index option gained 20.3 per cent while International Shares – Diversified increased 19.5 per cent.
And all of our Australian shares and property options also increased by more than 10 per cent in 2023, as did all segments of our MySuper option up to age 60.
You can see performance figures for selected options below. And for all our options in the investment returns section of our website.
smartMonday superannuation investment performance to December 31, 2023 (%)
Super option
10 years p.a.
7 years p.a.
5 years p.a.
3 years p.a.
1 year p.a.
3 months p.a.
MySuper age 40
N/O
7.7
8.7
6.8
11.4
6.4
MySuper age 45
N/O
7.5
8.3
6.3
11.1
6.3
High Growth - Index
8.4
8.5
10.0
8.2
14.4
7.3
Growth - Active
7.1
7.0
8.1
6.9
11.0
5.2
Balanced Growth - Index
6.6
6.3
7.2
5.0
11.1
6.1
Balanced Growth - Active
6.3
6.1
6.9
5.5
10.1
4.8
Cash
1.2
1.1
1.1
1.3
3.3
0.9
Notes: Data to December 31, 2023. PA = per annum (indicating annualised returns over that period). N/O = product not offered in this time period. The performance returns shown above are calculated net of investment fees and transaction costs and an allowance for tax on investment income. The returns are based on unit prices of each investment option calculated as at the end of the month. Unit prices are based on the latest available investment valuations at the time of calculation, which means they could be one or two days behind the current market indices. Past performance is not a reliable indicator of future performance. Consider APRA's performance test before you make a decision.
Why did investments perform so well in 2023?
Investments recorded strong gains mostly due to what happened in the last three months of the year (especially compared to the dismal few months immediately before).
Toward the end of 2023 investors’ increasing confidence caused the value of international stocks to soar, especially big technology companies. Australian shares also performed well. This rally boosted the value of your investments across growth-focused options, more than making up for negative periods earlier in the year.
On the defensive side, major asset classes we invest in, such as bonds and cash, benefited from higher interest rates, lifting returns for the year above 3 per cent in our dedicated options in that class.
These returns are very strong and we’re pleased with this performance, with a number of our options listed in SuperRatings’ recently released Top 10 Super Funds review – meaning they ranked among the best in the industry for returns for 2023. But please remember that your superannuation is a long-term investment, developing over your working life to become a valuable asset for your later years.
This year will help you in that journey, but there will likely be negative periods ahead also. For 2024, there is uncertainty about how investment markets will perform. We will continue to manage our investment portfolio with the aim to achieve the best outcome for you that we can. And we expect to have exciting and interesting news to share as the year unfolds.
Review your super investments
- Log into your online account to review your balance and investments
- Speak with a smartMonday smartCoach if you have any questions
- Consider other ways to make your super grow in 2024