TelstraSuper Chief Investment Officer, Graeme Miller said: “In the last 12 months, we have once again seen the benefits of TelstraSuper’s Lifecycle MySuper arrangement which provides members with a higher exposure to growth assets, such as shares and property, for much of their working life, and then is designed to progressively reduce risk from age 50 onwards.”

In October 2023, the TelstraSuper made changes to its lifecycle arrangement to increase the age at which MySuper members transition from the MySuper Growth investment option to the MySuper Balanced investment option.   This previously occurred at age 45, but in recognition of changing lifestyles, working patterns and longevity, this transition point was increased to age 50.

“Younger members under 50 years who are decades away from retirement generally have time on their side to ride out periods of market volatility that can come from a higher exposure to growth assets,” said Mr Miller. “Importantly, our Growth option is invested across a range of diversified assets, which makes investing super in this option typically less risky than investing in a single asset class, such as shares.”

Mr Miller said TelstraSuper had carefully considered the appropriate risk and return levels for the different age groups in its lifecycle arrangement so that the capital of older members in more defensive options was better protected in the event of a market downturn. 

For the 12 months to 30 June 2024, TelstraSuper’s MySuper Balanced investment option (which applies to members between age 50 and 65) earned 8.0%.  The MySuper Moderate option (which applies to members between age 65 and 70) earned 7.0% and the MySuper Conservative option (which applies to members above age 70) earned 4.9%. All returns are net of investment fees and taxes.

TelstraSuper also introduced a new High Growth investment option in October 2023. This is designed for members seeking higher long term returns who are comfortable with high levels of fluctuations in returns, particularly over the short term. This option, which has a high exposure to shares and a tilt towards technology and venture capital type investments is off to a strong start, earning 12.2% for the 9 months to 30 June 2024, net of investment fees and taxes.

Background:

TelstraSuper members invested in the fund’s MySuper lifecycle arrangement are invested across Growth, Balanced, Moderate and Conservative investment options, based on their age. Younger members aged up to 50  are invested in the TelstraSuper’s  MySuper Growth option which has a higher exposure to growth assets such as shares; those aged between 45 and 65 are invested in  TelstraSuper’s MySuper Balanced option; those aged between 65 and 70 are invested in the Moderate option; while older default members are invested in a fourth, Conservative option, which has greater exposure to defensive assets, such as cash and bonds. 

For further information please contact:

TelstraSuper Corporate Affairs Manager Sarah Goodwin  0401 769 296 | [email protected]