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Upbeat start to 2017-18 for ANZ Smart Choice Super

Funds are on track as we progress into the new financial year, with widespread positive gains, explains Mark Rider.

In brief:

  1. For July to September, lifestage funds increased returns by 0.66% to 1.97%.
  2. Returns were higher for those born in the 1970s, 80s, 90s and 2000s.
  3. More importantly, over the long-term, some funds are returning up to 10% a year.
  4. Most investment mix options performed well in the three months to September 30.
  5. Consider how you can take advantage of these positive market conditions.

ANZ Smart Choice Super lifestage funds (based on the decade you were born in) increased returns by 0.66% to 1.97% in the three months from July to September – a positive kick off to the 2017-18 financial year.

For those born to the background soundtrack of The Bee Gees, Michael Jackson or Savage Garden in the 1970s through to 90s, your funds grew between 1.7 per cent to 2 per cent for this quarter.

Members that grew up to the tunes of Bing Crosby, Johnny O’Keefe and The Beach Boys across the 1940s, 50s and 60s, recorded 0.7 per cent to 1.3 per cent growth.

No matter what music you’re into, this is a good performance, meaning ANZ Smart Choice Super is on track to continue the very positive gains seen last year (2016-17).

You can see the performance of your particular fund in the graph below.

Click here to enlarge the graph.

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.

The graph shows ANZ Smart Choice Super’s performance in the past five years. Looking at your lifestage fund you can see how your money has performed most recently (past three months, in the shaded section). But more importantly, the graph shows long-term performance over five years, with yearly returns up to 10 per cent, such as for the 1990s lifestage fund. Click here if you want to see the detail as a table.

This small case study helps explain how investments have grown.

Jill was born in the 90s and started with $10,000 in her ANZ Smart Choice Super account in 2012. In the five years since, her super savings increased 9.92 per cent on average each year. And now, her $10,000 has grown to $16,047. That’s including fees and without any salary or other contributions made into her account during the past five years.

 

A quick explanation of your fund’s performance

There were stronger gains for the 1970s to 90s (and 2000s) funds because they’re more exposed to riskier investments, which performed well in the three months to September 30 – particularly international shares, as investors are feeling confident the world economy will continue to grow.

Gains for those born in the 1940s, 50s and 60s were lower, as expected, due to investments in less-risky assets, such as bonds, which provided stable returns.

Those ANZ Smart Choice members that opted to choose their own investments can see results for different investment options below. From July to September we can see that apart from Australian fixed interest, all areas of investment generated positive returns.

Click here to enlarge the table.

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.

You can read the ANZ Chief Investment Office’s full analysis of market performance and superannuation returns here.

Build on your recent gains with these steps:

 

Super Insights

November - 2017

Want to know how to make a contribution?

  • To make a concessional (before-tax) contribution, speak to your employer about a salary-sacrifice arrangement
  • For non-concessional (after-tax) contributions, ANZ Smart Choice Super customers can make a contribution via an easy BPay payment.

Biller Code – 169060

Reference Code – Member number (This is your ANZ Smart Choice Super BSB and member number.)