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Russell Investments’ GoalTracker® MySuper option delivered an impressive return of 12.3% for its accumulation members aged 50 and under for the 2024 financial year.​

The headline result reflects strong performance for all members in Russell Investments’ GoalTracker MySuper option, with members seeing returns ranging from 9.2% to 12.3% (depending on their age) for the financial year to 30 June 2024.

Since its inception in March 2020, the GoalTracker MySuper option has delivered average annualised returns of between 8.3% and 11.3% across age bands.

“Our strong investment performance is helping to grow the super savings for more than 80,000 working Australians across the country. It also reinforces the commitment of the fund to manage investments through members’ life stages, giving them the best chance at a great life after work,” said Tim Furlan, Head of Australia and New Zealand at Russell Investments.

The GoalTracker option invests members’ super based on their age, through a diversified portfolio invested across a range of asset classes.

For younger members, the focus is on growth over the longer-term, allocating their portfolio to a high proportion of growth assets. This focus changes over time as members near retirement age, with the proportion of defensive assets increasing to manage risk.

“The two biggest factors that can limit members’ super savings is not taking on enough investment risk while they’re younger and then conversely not adequately derisking as they approach retirement. Our default GoalTracker option addresses those factors by investing based on the members’ age. They also have the option to get an even more personalised strategy by adding further details like their super balance, income, expected retirement age and income goal, and more.” Furlan said.

Daniel Choo, Senior Portfolio Manager at Russell Investments, said that “The aim of the GoalTracker option is to take acceptable levels of risk when appropriate through the asset allocations we set for members. We actively manage our actual exposures relative to those asset allocations, based on the outlook for both growth and defensive assets.”

“Despite a risk of recession, our strategy was to stick to our strategic asset allocations, and this paid off as markets continued to rise over the year. This decision was based on our Cycle, Valuation and Sentiment investment process.

“This year’s performance reflects the importance of balancing investment opportunities when markets are fearful and knowing when to dial down as markets become overexuberant. We continue to focus on achieving the best possible return for our members to reach their personal goals and financial security in retirement.”

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Russell Investments’ Managed Portfolios are a dynamic cost-effective multi-asset suite of four portfolios designed to provide investors with long-term returns and manage investment risks over time.

Launched in June 2019, the portfolios invest in a diversified asset mix with exposure to growth and defensive investments, while its Dynamic Core leverages active management to modify the portfolios according to the movement of investment markets in real-time, without incurring additional transaction costs by making unnecessary changes at the platform level.

Russell Investments’ Head of Distribution, Adviser and Intermediary Solutions, Tanya Hoshek, said: “The Dynamic Core has played an important role during the COVID-19 pandemic. It’s helped to cushion clients from the worst of the COVID-19 induced market shocks and positioned their portfolios to take advantage of the rebound as investor sentiment swung wildly.”

Despite a challenging 12 months for investment markets, the active portfolio management decisions in the Balanced Managed Portfolio’s Dynamic Core contributed to a 3.1% excess return over the portfolio’s benchmark^[1], while also outperforming the peer median^[2] by 2.2%.

SQM Research awarded the suite of actively managed portfolios with four out of five stars, citing its rigorous investment process – which includes strategic and dynamic asset allocation – and Russell Investments’ world class multi-asset portfolio management capability. SQM also noted the competitive price point and lack of performance fee when praising the actively managed portfolios – for example the Russell Investments Balanced Managed Portfolio is available at just 0.65% p.a^[3].

Russell Investments Portfolio Manager Daniel Choo said the Dynamic Core provides investors with access to strategies not generally available on Australian platforms.

“Half of the strategies we access through the Dynamic Core are typically not available to Australian retail investors as some are closed to new money, while others are restricted to large institutional mandates. Including these in our Managed Portfolios suite unlocks access for Australian retail investors to benefit from leading investment strategies through uncertain market conditions.”

“This rating is a welcome endorsement of our managed portfolios and recognises the strength of our investment management team and global research capabilities,” Mr Choo said.

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[1] Source: Morningstar AUS Multisector Growth TR AUD to 31 March 2021.
[2] Source: Morningstar Peer Median – net to 31 March 2021
[3] The fee is estimated based on the current underlying holdings and the standard model fee as of 31 March 2021. An individual investor’s fees may vary. Please see individual platform for PDSs.

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