Christian Super Investment Performance Facts

It might surprise you to learn that Christian Super has outperformed half of the other super funds in Australia during the last three years, and our MySuper product was one of the top three performing growth funds in 2021 according to Chant West research.

How is super fund performance measured?

‘Performance’ is another way of saying investment returns. Currently, there are many different ways to measure a super fund’s performance. A few of these measures are explained below.

Results vs objectives

A super fund will state its investment objectives in its Product Disclosure Statement, so that you know the target investment return for each investment option.

For example: the investment objective for our MySuper product is to achieve a 3% annualised return above inflation over 10 years. For the 10 year period ending 31 December 2021, our annualised return was 9.02% vs an objective of 4.94%.

Historically, Christian Super was focused on achieving its own stated objectives and it has consistently done so. In response to a changing economic and regulatory environment, we now measure performance in other ways, which are further explained below.

Results vs other super funds

Independent super fund rating agencies like SuperRatings and Chant West compare the performance of superannuation products. Some super funds have been trying to outperform other super funds for many years. Others, like Christian Super, have historically been focused on their own investment objectives and the unique needs of their members.

In response to a changing economic and regulatory environment, we made some important changes to our investment strategy a few years ago and increased the amount of growth assets in our MySuper product. Since that time, we have also had a greater focus on our performance compared to other super funds.

Since making this change, all of our investment options have outperformed half of the similar options offered by other super funds. Similar options are defined as those that have a similar percentage of growth assets.

The table below benchmarks our investment option returns against the median super fund average. Please note that it excludes three of our investment options that have less than 3 years of historical investment performance.

3 Year Performance to 31 December 2021 (Accumulation Options)i

Investment Option Christian Super’s Objective Christian Super’s Result Median Result of Similar Super Funds Christian Super’s Rank
My Ethical Super

(MySuper product)

5.1% 11.0% 10.6% 59/190
Ethical High Growth 5.6% 14.6% 13.7% 17/61
Ethical Conservative Balanced 4.1% 8.3% 7.9% 30/103
Ethical Stable 3.6% 5.9% 5.4% 36/110
Ethical Cash 0.6% 0.9% 0.7% 13/69
Results vs new APRA benchmarks

The Australian Prudential Regulation Authority (APRA) supervises institutions across banking, insurance and superannuation. In recent years, APRA has started to use new tools to measure super funds. One of these tools is called the Heatmap which was introduced in 2019. The newest tool is the annual performance test that was introduced in 2021. The first performance test applied to MySuper products only.

Both tools currently measure super funds vs new benchmarks, based on their past performance for up to 7 years.

In response to a changing economic and regulatory environment, we made some important changes to our investment strategy a few years ago, increased the amount of growth assets in our MySuper product, and made improvements in manager performance. Our short term investment performance is strong compared to other super funds and relative to the benchmarks used for the performance test.

It is too early to say whether our MySuper product will be assessed as ‘performing’ or ‘underperforming’ in the 2022 performance test, both scenarios are possible.

 

Additional comments

Super is a long term investment so we encourage people to look at timeframes greater than 3 years. However, the latest 3 year period is important to consider since it most accurately reflects Christian Super’s current investment approach.

If you have any questions about the contents of this article, please contact us.

Past performance is not a reliable indicator of future performance.

 

i Source: SuperRatings data to 31 December 2021.