So, it might come as a surprise to learn that this low-profile asset class has been a star performer, boosting super returns for members and contributing to TelstraSuper being named “Best of the Best” for its property performance in 2023^. 

For the past five years, we’ve been heavily invested in industrial property, particularly warehouses and distribution centres. In contrast to what happened to many other property sectors during the Covid pandemic, the value of these assets soared, largely due to the online shopping trend which caused a surge in demand for the warehouses and logistic centres that store and distribute online purchases. 

Our Chief Investment Officer, Graeme Miller, says the fund’s decision to be overweight in industrial property and underweight in traditional retail property delivered for members on two fronts. 

“Having more exposure to industrial property not only allowed us to reap the benefit of rising values, it also meant we had less exposure to sectors of the property market that didn’t fare so well, such as traditional shopping centres” he said. 

Industrial property wasn’t the only driver of the fund’s stellar property portfolio.  

We have a significant parcel of Bunnings stores in our portfolio, and our shared ownership includes the land, car parks and buildings at various sites.  Bunnings was another beneficiary of the Covid lockdowns, as more Australians stayed home and turned to DIY projects. 

Similarly, the work-from-home trend saw the fund benefit from its exposure to supermarkets in neighbourhood shopping centres as more people shopped locally. 

The sum of all these factors saw the property option take out two of Money Magazine’s 2023 Best of Best Awards^ for Highest Super Performer as well as Best Property Super Product. 

Importantly, it’s not solely investors in the Property investment option who’ve benefitted from this success. The gains from the property portfolio also flow to our diversified investment options such as Growth, Balanced and Conservative, where members have their super invested across a range of assets, including property, shares and cash. “We’ve had a great couple of years in property, where just about everyone in the fund has benefitted. But in a world where interest rates are rising, the outlook for property is more challenged,” Graeme said.  “While property is likely to always be an important part of our portfolios, we’ve recently taken the opportunity to sell some of property and lock in the profits for our members.” 

The fund’s diversified portfolio options are designed to spread investment risk across a range of assets, which helps protect our members’ retirement savings from unpredictable markets and helps cushion the impact of negative returns from assets that might not perform well.

If you want to more information about your investment options or to work out your risk profile, you can speak to an Adviser from TelstraSuper Financial Planning over the phone by calling 1300 033 166 or filing out our online contact form. 

^ About the Money Management Best of the Best Awards
Highest Super Performer: Number one performing superannuation product across all asset classes and investment styles ranked by weighted ranking of performance taking into account performance over 1, 3, 5 and 10 years. Product may be geared and prone to extreme levels of investment risk. Must have at least 3 year performance, be public offer and AAA rated by SelectingSuper.

Best Property Super Product: Number one property superannuation product ranked by best weighted ranking of performance taking into account performance over 1, 3, 5 and 10 years. Must have at least 3 year performance, be public offer and AAA rated by SelectingSuper.