|First published: November 19|
We have been generating positive returns for Queenslanders for more than 50 years, and this success is driven by our innovative investment framework. The benefits of this framework are shown through our Diversified Growth option that has returned +9.4% for the 2017/18 Financial Year – 4% above our investment objective. LGIAsuper’s Balanced option returned +7.5%.
Recent results are backed by a track record of high performance dating back decades, with LGIAsuper’s default investment option returning +9.15% p.a. over 30 years. We prepared for, and managed well, the Global Financial Crisis (GFC), the Asian Financial Crisis (AFC) and Dot-com bust. This history is partly why the Australian Prudential Regulation Authority (APRA)1 has placed LGIAsuper as one of Australia’s top ten superannuation investment performers of the last decade.
This achievement is driven by our investment in underlying, stable markets such as infrastructure and property. Our investment in infrastructure assets, predominantly in Queensland and Australia, led to a stellar 29.2% return before fees and taxes. LGIAsuper’s highly diversified property portfolio performed consistently well, supported by low gearing and low vacancy rates, with fully hedged gains of 10.15% before fees and taxes.
While volatility in the markets can be unsettling, LGIAsuper’s diversified investment framework is prepared for natural short-term market movement.
“Markets naturally follow an ‘up and down’ trajectory but, with smart, diversified investment, members will see their returns increase in the long-term,” Ms Farrar said.
“While pursuing more defensive options in response to market fluctuations may seem sensible in the short-term, retirement savings need to be viewed through a longer lense.”
We are preparing for these impacts by investing in non-mining businesses and public infrastructure, industries that can deliver consistent, apolitical returns.
From our 100% ownership of Rockhampton’s Fitzroy River macadamia farm to the 32.5% ownership in the growing Sunshine Coast Airport, our moderate risk, moderate – high return, growth assets are chosen based on their long-term stability.
These community-based investments benefit members and whole communities across Queensland. We take our role in providing sustainable retirement for Queenslanders seriously, and work hard to ensure the positive impact of our investments filters through to local economies.
For more information about how LGIAsuper is investing your money for the future, please call us on 1800 444 396.