UniSuper’s Top 2024 Performance Driven by International Equity Markets

UniSuper’s exceptional performance in 2024 was primarily fueled by the robust international equity markets, as reported in the Super Review’s 2025 Guide to Superannuation. The Balanced option yielded a substantial return of 9.2% by June 30, 2024. Noteworthy were the Sustainable High Growth and Sustainable Balanced options, which boasted returns of 15.2% and 12.2%, respectively, during the same period. These options, distinguished by their unique asset allocations favoring international shares over Australian shares and incorporating additional screening criteria, particularly thrived due to their elevated exposure to international shares, notably in the US. Moreover, a strategic sector bias towards IT and reduced exposure to the materials sector further bolstered their returns.

UniSuper’s adept asset allocation decisions evolved in tandem with the market dynamics, especially favoring options with higher equity allocations, particularly in international markets. The institution’s active investment approach, coupled with a vigilant in-house team closely monitoring market movements, enabled strategic adjustments aligned with the various investment option profiles. This proactive stance and the strategic asset allocation framework have positioned UniSuper’s portfolios advantageously for long-term growth and stability.

In response to market volatility in 2024, UniSuper implemented robust risk management strategies aimed at mitigating losses. Offering a spectrum of investment options across risk profiles, including pre-mixed multi-asset class and sector options, UniSuper catered to members’ diverse risk appetites. Noteworthy was the introduction of unique options like the Global Companies in Asia investment option, designed to tap into the anticipated growth in emerging Asian economies’ consumption patterns by investing in established global brands. Furthermore, personalized advisory services assisted members in tailoring investment strategies to align with their financial goals and risk tolerance.

UniSuper’s member demographics reflect a diverse profile, with over 647,000 members as of June 30, 2024, encompassing a broad age range. Notably, 20% of members are under 30 years old, while approximately a third are 50 and above. UniSuper engaged with its members throughout the year through various channels, offering investment-related content through platforms like the Super Informed Radio podcast and quarterly video updates by the chief investment officer. Additionally, live and on-demand webcasts and Retirement Outlook events facilitated personalized interactions with members, addressing their evolving needs and financial goals.

Looking ahead to 2025 and beyond, UniSuper aims to maintain its focus on quality asset investments, both listed and unlisted. Notable investments made during the 2024 financial year include ventures into unique assets like Tasmania’s largest hardwood estate and commitments to sustainable projects like the Green Energy and Climate Opportunities Fund. With a significant portion of funds managed in-house, UniSuper stands well-equipped to swiftly evaluate and execute investment opportunities, ensuring continued growth and value creation for its members.