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Solid returns for ANZ Smart Choice Super

Strong market performance and strategic asset allocation has led to above-average results, writes Mark Rider.

ANZ Smart Choice Super funds delivered robust returns in the past financial year, despite a challenging time for investments.

SuperRatings recently released its analysis for how Australian funds have been performing, dividing funds into four categories, or quartiles. If we look at the performance of ANZ Smart Choice Super for both the past financial year and the past three years, then ANZ Smart Choice Super lifestage funds rank in the second and first quartiles against all peers, including industry funds.^ This means they’re performing above average.

(By default, members are placed in portfolios according to their decade of birth, called “lifestage”, with each portfolio exposed to a different level of risk, which becomes lower for older members.)

If we look at ANZ Smart Choice Super 1960s fund as an example, it increased 3.5 per cent in the 12 months to June 30, and on average it has grown 8.2 per cent per annum in the three years to June 30. (All results can be seen in the tables below.)

SuperRatings has given ANZ Smart Choice Super an overall gold rating. It was also named the “fast mover” for the second year in a row.

June-quarter performance

In the three months to the end of June, all lifestage funds performed in the top quarter compared with equivalent peers, aside from the 1940s fund which was second quartile.

As can be seen in the table below, ANZ Smart Choice Super members born in the 1960s, 1970s, 1980s and 1990s enjoyed strong growth in their retirement savings. Investments more exposed to "growth assets" fared better during the June quarter, because of increases in the sharemarket.

Lifestage investments

Options 3 months 6 months 1 year 3 years (p.a.)
1940s 1.81% 2.57% 3.96% 5.26%
1950s 2.73% 2.75% 4.30% 7.26%
1960s 3.20% 2.38% 3.54% 8.19%
1970s 3.47% 2.18% 3.12% 8.67%
1980s 3.61% 2.03% 2.89% 9.01%
1990s 3.67% 1.99% 2.84% 9.06%

 

Note: Reporting data to June 30, 2016. PA = per annum. Please note that past performance is not a reliable indicator of future performance.

Choose your own investment mix

Options 3 months 6 months 1 year 3 years (p.a.)
Cash 0.45% 0.92% 1.87% 2.15%
Conservative 1.82% 2.61% 3.96% 4.82%
Moderate 2.79% 2.87% 4.43% 7.20%
Growth 3.34% 2.36% 3.41% 8.34%
Australian equities 3.56% 1.36% 1.42% 7.47%
International equities 1.92% 0.08% -0.89% 9.29%
Global property 4.34% 8.55% 16.80% 12.40%
Global fixed interest 2.47% 5.65% 7.76% 6.04%

Note: Reporting data to June 30, 2016. PA = per annum. Please note that past performance is not a reliable indicator of future performance.

The above investment returns are not applicable to QBE members. Refer below footnotes for important information.

Members of ANZ Smart Choice Super for employers and their employees can access the latest returns across the full suite of investment choices here or by visiting the ‘Investment portfolio’ page via your ANZ Smart Choice Super account in ANZ Internet Banking.

How ANZ has invested your super savings 

The start of 2016 has been volatile for sharemarkets worldwide, highlighting the importance of having a diversified super fund portfolio to ride out the turbulence.

During the first half of 2016, ANZ’s Chief Investment Office moved ANZ Smart Choice Super investment portfolios into more defensive growth assets such as global property and low-volatility shares to manage risk versus return.

As a result of this asset allocation, most ANZ Smart Choice Super members scored an encouraging return in the past quarter. Figures above show this in detail, but general performance was above industry average.

June-quarter performance was due to stronger market performance, which lifted due to actions taken by central banks around the world, particularly in China, which have supported growth.

August 2016