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| Annualised Returns (% p.a.) | |||||
|---|---|---|---|---|---|
| 1 year | 3 years | 5 years | 7 years | 10 years | |
| IOOF Balanced Growth | 4.72 | 6.22 | 8.33 | 6.85 | 6.28 |
Strong longer-term performance for IOOF Balanced Growth members
IOOF’s Balanced Growth investment option – our default MySuper investment option – delivered a strong 8.33% p.a. over five years ending 31 March 2025. The Portfolio also delivered another positive return over the one-year for the same period, returning 4.72%.
The option’s performance has primarily been driven by its strategic exposure to listed global and Australian shares. Global share market returns have been strong over the past two years driven by investor appetite for US technology stocks, especially the Magnificent Seven (Apple, Microsoft, Google’s parent Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla).
The option’s exposure to these asset classes has contributed to the overall growth of the option, with exposure to global share markets providing the potential for significant capital appreciation over the long-term.
Stanley Yeo, Head of Strategy and Equities noted: “Our investment approach emphasises a long-term focus, prioritising sustained growth and stability. A strong 8.33% p.a. over five years is great news for members in our Balanced Growth investment option.
The option has seized growth opportunities in global share markets, while mitigating market volatility through a diversified mix of high-quality unlisted and alternative assets (investments that are not traded on traditional share markets).
However, the recent rollout of President Trump’s new trade policy has rattled share markets. The United States’ imposition of tariffs – a tax on imports – has triggered higher market volatility and increased concerns that the US economy might be headed towards recession. These events are a reminder that macroeconomic factors are ever present, sometimes with more force than usual, like now.
In these environments we believe that being, agile, selective and opportunistic is important in navigating the volatility that is likely in markets in the coming months.
Diversification remains a cornerstone of our investment philosophy. By spreading investments across various asset classes, we aim to reduce risk and enhance returns. This approach not only helps in navigating market volatility but also leads to stronger long-term performance.
We also maintain our exposure to alternative investments, like insurance related investments, which provide an attractive source of diversification given their extremely low correlation with share market movements.
Finally, it’s important to remind investors that while short-term market fluctuations can happen, our focus remains on delivering sustainable long-term growth.”
Find out more about how we are managing your super through this period of market volatility.
Latest investment returns to 31 March 2025
All returns are net of investment fees and estimated taxes and do not include platform administration fees and costs.