Investment update – March 2023 quarter

Key highlights

• All major asset classes delivered positive returns over the three months to March 2023
• Signs that inflation has peaked has led to a more moderate outlook for interest rate rises
• International Shares returned 7.7%, while Australian Shares returned 3.3%
• Australian and global Bonds returned 4.6% and 2.5%, respectively
• My GESB Super plan returned 4.02% for the quarter
• My West State Super plan returned 4.30% for the quarter
• RI Allocated Pension Conservative plan returned 3.05% for the quarter

What were the main reasons for recent investment market returns?

• Inflation and interest rate expectations

  Shares and Bonds have performed well over the past three months due to signs inflation is easing. The pace of interest rate increases is likely to slow down.

• Concerns in the banking sector

  In March, two US regional banks collapsed and Credit Suisse was taken over by UBS, causing instability in share markets. However, Bonds rallied as investors looked for safer investment options.

• Robust economic conditions

  Despite problems in the banking sector and inflation remaining high, the global economy has remained resilient. Job markets are strong, people continue to spend and businesses are still investing. Europe's energy crisis has been managed well and China has reopened its borders to travellers.

As shown in the above graph, we have performed above benchmark in most asset classes over the past 12 months.

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.

Other investment plans: See the investment plans for all of our available plans

Returns greater than one year are annualised.

Although our diversified plans have experienced slightly negative returns over the past 12 months, performance over all other time periods remain positive.

1 Returns are reported net of fees and taxes.
2 Transition to Retirement Pension was incepted on 15 June 2017, so 10-year 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 Net Total Return Index (50% hedged to AUD); 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.