/content/dam/Superinsights/Images/ArticleHero/img-cio-market-report-hero.jpg

Global markets remain upbeat in the September quarter

Global markets rallied in September 2017 quarter, with international shares providing solid growth to ANZ Smart Choice Super, explains Mark Rider.

ANZ Smart Choice Super investments continued to perform well in the September quarter. The main contributor was global shares as they continued to rally on solid global growth outlook. Australian shares were also positive, which meant those in the ANZ Smart Choice Super lifestage funds with more growth assets benefited the most from continued sharemarket strength. Bond markets were mixed as positive returns from global fixed interest were somewhat offset by Australian fixed interest. 

Overall, all ANZ Smart Choice Super lifestage funds produced positive results, with returns ranging from 0.66% for the 1940s fund to 1.97% for the 1990s fund.

As you know, most ANZ Smart Choice super members are invested in funds according to their decade of birth. In the ‘3 months’ column in the table below you can see the growth in each fund for the latest quarter of 2017. Click on the relevant decade for a more detailed look at your fund performance.

Global shares rally

Global Markets continued to focus on the improving global economic outlook and rising company earnings. The combination of solid growth outlook and benign inflation further spurred the US Federal Reserve to gradually remove some of the monetary stimulus that has supported markets over recent years.

US shares continued to perform strongly this quarter as consumer confidence remained buoyant and business investment intentions rose. Renewed talk of tax reform from Washington and potential fiscal stimulus added to the optimism. A weaker US dollar also helped improve emerging market shares to deliver strong returns this quarter.

In Europe, growth has continued to improve, providing the European Central Bank room to taper the pace of quantitative easing purchases. In Japan, shares had a strong quarter as improved global growth helped lift exports and on expectations that President Abe would be re-elected.

Positive Australian market

The Australian sharemarket was positive in the quarter, but lagged somewhat relative to its global counterparts. The Reserve Bank of Australia remained on hold and acknowledged that the economy has steadily improved.

Bond yields were little changed over the quarter, reflecting a largely stable global economic backdrop with continued subdued inflation and wages growth. In general, corporate bonds outperformed government bonds. 

ANZ Smart Choice Super lifestage fund performance (%)

Fund
(decade of birth)

3 mths

6 mths

1 yr

2 yrs (pa)

3 yrs (pa)

4 yrs (pa)

5 yrs (pa)

1940s

0.66

1.54

2.72

3.67

3.90

4.23

4.48

1950s

0.81

1.77

4.33

5.38

5.37

5.84

6.65

1960s

1.34

2.48

6.66

7.17

6.59

7.01

8.27

1970s

1.73

2.98

8.47

8.55

7.49

7.79

9.26

1980s

1.91

3.24

9.41

9.12

7.99

8.24

9.81

1990s

1.97

3.31

9.62

9.30

8.06

8.31

9.92

2000s

1.92

3.24

Note: Returns quoted use the unit price which is calculated using the net asset values for the relevant month end. Please note that all returns are after the deduction of investment fees. Reporting data is to September 30, 2017. pa = per annum. Past performance is not a reliable indicator of future performance. The 2000s lifestage fund’s inception was on 18th February 2017 and therefore only the 3 and 6 months performance data are available.

As can be seen in the table above:

  • the 1940s fund returned 0.66 per cent for the September quarter
  • those with the most growth assets, the 1980s, 1990s and the 2000s funds were the best performers with 1.91%, 1.97% and 1.92% respectively
  • the 1970s fund, with investments roughly split 80 per cent (growth assets) to 20 per cent (defensive assets), returned 1.73 per cent.

When comparing results, it’s recommended to consider returns over the long term. There will always be short-term variations in the market, but they’re not a reliable indicator of overall fund performance.

Choose your own investment mix performance

Those ANZ Smart Choice members that opted to choose their own investments can see results for different classes of assets below. In the past quarter we can see that apart from Australian fixed interest, all others generated positive returns. 

ANZ Smart Choice Super choose your own investment mix performance (%)

Fund

3 mths

6 mths

1 yr

2 yrs (pa)

3 yrs (pa)

4 yrs (pa)

5 yrs (pa)

Cash

0.34

0.68

1.40

1.60

1.77

1.91

2.07

Conservative

0.51

1.30

2.32

3.47

3.63

3.89

3.96

Moderate

0.93

1.93

4.62

5.66

5.58

5.96

6.60

Growth

1.53

2.77

7.54

7.90

7.06

7.36

8.60

Australian equities

0.97

-0.30

8.71

10.55

6.95

6.74

9.55

International equities (hedged)

3.81

6.79

17.15

13.90

9.32

10.94

12.90

International equities (unhedged)

2.37

5.62

13.63

7.51

-

-

-

Global property

0.76

2.35

0.26

7.31

8.50

9.01

10.04

Global fixed interest

0.45

1.40

-0.22

3.19

3.68

4.34

3.88

Australian fixed interest

-0.23

0.54

-

-

-

Global Smaller Companies*

3.59

6.85

14.90

9.24

-

-

-

Note: Returns quoted use the unit price which is calculated using the net asset values for the relevant month end. All returns are after the deduction of investment fees. Reporting data is to September 30, 2017. pa = per annum. Past performance is not a reliable indicator of future performance. Note the Australian Fixed Interest fund’s inception was on 18th February 2017 and therefore only the 3 and 6 months performance data are available. The International Equities (unhedged) fund and the Global Smaller Companies fund inception was on 25th May 2015 and therefore the 3 year performance data is not yet available.
*The Global Small Companies investment option is not available to members of ANZ Smart Choice Super and Pension.

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

(Note: The above investment returns are not applicable to QBE members. Refer below for important information.)

 

See your super balance online

Members across the ANZ Smart Choice Super suite of products can see their individual super balance via ANZ Internet Banking.

Simply log on to ANZ Internet Banking and select your ANZ Smart choice Super account.

If you need help getting online, call Customer Service on 13 12 87 (Monday-Friday 8.30am-6.30pm AEST)

 

Super Insights

November - 2017