These last few years underscore why you’ll always see two regular disclaimers whenever we talk about investment returns: past performance is not an indicator of future performance, and that it’s important to look beyond the short term.
Though they may seem like cliches, they hold true both in times of highs and during the lows – just as the negative returns for the 12 months to 30 June 2020 were no indication of the record high returns to come over the next financial year, those record returns in turn were not a reliable indicator of the following year. This is because it’s normal for financial markets to experience ups and downs over the short term.
Looking at returns over the long term, on the other hand, can help provide a broader picture of consistency. For example, most of our investment options continue to rank in the top 10 in their respective SuperRatings categories over 3 and 5 years as at 30 June 2023. In fact, all the options below are 1st quartile in their respective SuperRatings categories over 3, 5 and 7-year periods as at 30 June 2023*.