CFS touts adviser support following financial year super results

Colonial First State (CFS) has announced returns of more than 10 per cent over the 2022–23 financial year for members of its MySuper products.

The FirstChoice Employer Super’s balanced fund (Lifestage 1965–69) saw a 10.5 per cent return, while FirstChoice Employer Super’s growth fund (Lifestage 1975–79) delivered a 12.2 per cent return. CFS Essential Super members saw a return of 10.7 per cent over the financial year.

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Speaking to ifa, Bryce Quirk, group executive – distribution at CFS, said: “We are very pleased to deliver such strong performance across our investments for advisers and their clients over the year.

“These results are a solid foundation from which CFS will continue to build its investment and platforms capabilities moving into the new financial year.”

Mr Quirk added that the returns are the result of “substantial investments” over the last year, adding that “advisers and their clients are now seeing the benefits of that investment”.

“With the imminent launch of CFS Edge, we are excited about continuing to support financial advisers across Australia and helping them build smarter and more efficient offerings for their clients,” he told ifa.

Included in the changes at CFS over the last 12 months was the appointment of Jonathan Armitage as its new chief investment officer.

Mr Armitage said the investment performance over the year has largely been driven by strong returns in global and domestic equities, pointing to fixed income in particular and spruiking the growth possibilities in unlisted assets.

“We have also seen good returns from fixed income in what has been a very challenging market, which has helped us achieve such a strong result,” he said.

“Looking ahead, we see significant valuation discrepancies across unlisted assets between different holders. CFS is in a strong position to capitalise on those opportunities and continue delivering strong returns for members through our disciplined investment approach.”

Following the end of financial year results, the total funds under management (FUM) held by CFS sit at $147.4 billion on behalf of 940,000 members.

Earlier in July, research house SuperRatings published its estimates for June’s super fund returns.

The median balanced superannuation option delivered a 1.2 per cent return during June, strengthening an already positive annual return to 8.5 per cent for the year to 30 June 2023.

Commenting on the results, executive director of SuperRatings, Kirby Rappell, said: “While there are significant conversations about interest rate rises, inflation, and global uncertainty front and centre within the economy, it is reassuring to see superannuation funds’ ability to deliver a competitive outcome for everyday Australians.”