Investment update – 2022/23 financial year

Key highlights

• Share markets rebounded strongly over the year, despite high inflation, rising interest rates and isolated areas of stress
• International Shares returned 17.6% over the year, while Australian shares added 14.4%
• Bond markets returns were relatively weak, with Australian bonds rising 1.2% and global bonds falling 1.8%
• With most asset classes generating positive returns, our investment plans delivered strong returns for members over the 12 months to June 2023
• The My GESB Super option added 9.13% after fees and taxes, while the My West State Super option returned 8.39% after fees
• Over the quarter, My GESB Super returned 2.15%; My West State Super added 1.77%; and RI Allocated Pension Conservative gained 0.58%

Year in review – with Paul Taylor

What were the main reasons for recent investment market returns?

• Share markets rebounding
  US technology companies, particularly those that provide or benefit from exposure to artificial intelligence, have led the rebound in share markets. A resurgence in the Japanese stock market has also been a key driver of returns.

• US debt ceiling
  The US debt ceiling resolution provided some relief for financial markets globally. Concerns over a potential default, or even a lengthy delay, in resolving the US debt ceiling had put downward pressure on financial markets.

• Moderating inflation and interest rate expectations
  While most central banks continued to raise interest rates during the quarter, inflation is easing, and the pace of interest rate increases has slowed down. However, the full impact of interest rate increases is yet to be felt and caution remains over the investment environment in the short to medium term.

As shown in the above graph, we have performed above benchmark in most asset classes over the past three years.

Performance of investment options

Investment returns over both the short and long term for some of our diversified plans are shown in the table below. You can also see the investment return history for all of our available plans.

Returns greater than one year are annualised.

Despite market volatility in recent times, our diversified plans have delivered sound returns over all time periods.

1 Returns are reported net of fees and taxes.
2 Transition to Retirement Pension was incepted on 15 June 2017, so longer-term returns are not available. Returns are reported net of fees and taxes.
3 Returns are reported net of fees.

Indices: Australian Shares - S&P/ASX 300 Accumulation Index; International Shares - MSCI World ex-Australia Index (50% hedged to AUD, 50% unhedged); Global Listed Property - FTSE EP/NAR DEV NET HDG AUD; Australian Bonds - Bloomberg AusBond Composite 0+ Yr Index; Global Bonds - Bloomberg Barclays Global-Aggregate Total Return Index Value Hedged AUD; Investment Grade Bonds – 50/50 combination of Australian and International Bonds; Cash - Bloomberg AusBond Bank Bill (BB) Index ; Listed Infrastructure - FT Dev Core Infr 50/50 Hdg; Medium Risk Alternatives - Bloomberg AusBond BB Index + 3.75%pa; Defensive Alternatives - Bloomberg AusBond BB Index + 1.75%pa; Private Equity – Blended Benchmark of Australian and International Shares.

Performance information should be used as a guide only, is of a general nature, and does not constitute legal, taxation, or personal financial advice. The performance of your investment plan is not guaranteed and returns may move up or down depending on factors such as investment market conditions. Past performance should not be relied on as an indication of future performance.  In providing this information, we have not considered your personal circumstances including your objectives, financial situation or needs. We are not licensed to provide financial product advice. Before acting or relying on any of the information in this website, you should review your personal circumstances and assess whether the information is appropriate for you. You should read this information in conjunction with other relevant disclosure documents we have prepared and where necessary seek advice specific to your personal circumstances from a qualified financial adviser.