SuperRatings results confirm CSC's long-term investment strategy is working
Investment returns during 2018-19 have shown all of Commonwealth Superannuation Corporation’s (CSC) PSSap investment options continue to exceed their return objectives for our customers over both short and long-term time periods.
CSC is pleased that over the past financial year customers in all three of its PSSap investment options – MySuper Balanced, Aggressive and Income Focused – received some of the best investment returns across the industry, but the focus continues to be on delivering the outcomes needed for our customers in retirement.
In its annual industry-wide survey of superannuation fund investment returns, independent ratings agency, SuperRatings ranked all three of CSC’s PSSap investment options in the top 10. CSC’s PSSap Income Focused option was once again ranked 1st of 49 products, the PSSap Aggressive investment option was ranked 2nd of 48 products, and the PSSap MySuper Balanced option was ranked 9th of 48 products.
Australia is moving into a new phase of superannuation, where there are more customers drawing down on their super than those that are contributing.
CSC has long been focused on the importance of understanding our customers’ particular needs in retirement, their different health expenses, risk appetites and capacity to cope with variability in their retirement income. CSC’s PSSap MySuper Balanced fund investment objective of CPI plus 3.5 per cent per annum is specifically derived from understanding those needs and is consistent with supporting customers to receive an income in retirement at least equivalent to the Australian Superannuation Fund Association’s (ASFA) 'comfortable standard' by the time they reach the age of 65.
CSC’s investment approach reflects the needs of our customers and is not built to compete with other superannuation funds, who have different customers with different characteristics. CSC’s approach is built to ensure that our customers have the highest probability of achieving a comfortable retirement income, given their particular circumstances. CSC’s investment approach is based on a number of principles, which include:
- Global best-practice investment governance and investment-risk management to support real-time decision making and innovation;
- Prudent acquisition of high-quality assets with sustainable growth; and
- Robust stewardship of our investments as active owners.
These principles have supported CSC’s capacity to successfully invest directly in new opportunities such as windfarms, data centres and hospitals.
Given the purpose of CSC’s balanced option, it expects that it will outperform peers in volatile and troubled market environments, as it did in the six months to December 2018, but underperform them when markets are driven by a “herd mentality” rather than fundamentals.
Over timeframes relevant to our customers, CSC expects this will accumulate to very competitive retirement outcomes. Importantly, CSC’s PSSap MySuper Balanced fund consistently ranks in the top quartile of peers over the long-term when comparisons consider not just investment returns but also risk.
CSC’s PSSap Income Focused and Aggressive fund options are more directly comparable to industry peers and are consistently in the top quartile on the basis of investment returns as well as investment-risk management.
CSC works to support all of our customers to think beyond investment returns. CSC encourages customers to take appropriate actions to maximise their retirement income by choosing an appropriate investment option, contribution rate, and insurance option, suitable for their specific circumstances. CSC is committed to ensuring every one of its customers has the information they need to retire comfortably.
The full SuperRatings ranking lists can be found at www.superratings.com.au or you can watch the video below to find out more about the SuperRatings process.
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