Newsletter   •   Quarter 1   •   2022

Woolworths Group Retirement Fund

Portfolio Performance

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The chart above shows the investment returns of the Woolworths Group Retirement Fund’s High Growth Portfolio, in which most members are invested. All returns are net of fees. These investment returns are compared to inflation and to the Balanced Index. The Balanced Index represents the market returns of a similar investment strategy – approximately the returns you would earn if your savings had been invested without using investment managers to make active investment decisions.
The goal of YOUR retirement savings is to provide you with an income in your retirement.
To make sure that this income is adequate, you need to contribute as much as you can from your salary to your retirement savings for as long as you can.

The Fund’s High Growth Portfolio

In order to maintain the purchasing power of your Fund savings over time, it is critically important that they are protected from the erosion of inflation.

Your savings need to grow by an investment return that is above inflation over the long term (10 years and more). With this in mind, consider the investment returns of the Fund’s High Growth Portfolio shown on the above chart.

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  • By delivering returns comfortably higher than inflation over the last 10 years, the High Growth Portfolio is successfully growing the value of savings over the long term.
  • The High Growth Portfolio has delivered returns close to those of the Balanced Index, while maintaining a lower level of risk (meaning less volatility or variation in returns from month to month).
  • The returns in 2021 were unusually high because of the extreme market movements responding to high levels of uncertainty in socio-political and economic contexts.
These extreme market movements may continue for some time yet. That is why it is important to remain focused on your long-term investment returns – maintain your contributions to the Fund and stay invested, so as to benefit from the increase in value over time.

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