Colonial First State (CFS) has reported exceptional returns of over 17% for some of its MySuper superannuation customers during the 2024 calendar year, significantly outperforming the peer group average. The strong performance was attributed to robust investments in global equities and Australian shares.
The superannuation industry experienced its most successful year since 2021, with CFS’s aggressive growth funds leading the way. The FirstChoice Employer Super balanced fund delivered an impressive 17.4% return for members born between 1980 and 2004, while those in the 2005–2009 cohort achieved an even higher return of 17.6%.
These funds allocate more than 90% of their assets to growth sectors, in contrast to retirement-age portfolios, which maintain a balanced 50-50 split between growth and defensive investments.
The MySuper Lifestage 1965–69 cohort delivered returns of 13.8%, while the FirstChoice Employer Super growth fund (MySuper Lifestage 1975–79) posted a return of 16.6%, highlighting the continued success of growth-focused strategies.
Colonial First State Chief Investment Officer Jonathan Armitage noted that 2024 marked the second consecutive year of double-digit returns, driven by strong equity market performance across both domestic and international markets.
“It was very clear that the returns for our funds were driven by equity exposures, not just in the US, but in other markets as well,” said Armitage. “But it was dominated by some of those tech companies and healthcare stocks too. Domestically we benefited from strong gains by the banks and also from stocks such as Goodman Group.”
SuperRatings’ analysis showed the median balanced option returned 11.5% for 2024, with most options delivering returns exceeding 10%. Top-performing providers achieved returns of 12.5%, underscoring the strong market conditions during the year.
Looking ahead, Mr. Armitage stated that CFS is focused on diversifying return sources for its members. This includes exploring private credit and emerging markets, as well as expanding equity exposures.
However, the fund remains cautious regarding cryptocurrencies. “We have no plans to add bitcoin into our investment mix,” Armitage said. “We think the technology is interesting, but crypto itself is difficult to point to any fundamentals that drive the price of it.”
With another year of stellar performance, Colonial First State continues to solidify its position as a leader in the superannuation industry, delivering significant value to its members.