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Robust returns for the 2016-17 year

Super funds recorded strong results in the past financial year, with sharemarkets driving that performance, says Mark Rider.

ANZ Smart Choice Super lifestage funds performed well in the 2016-17 financial year, with half of the lifestage funds earning near or above 10 per cent returns across the 12 months to the end of June.

Those born in the 1990s earned 10.91 per cent in their ANZ Smart Choice Super lifestage fund, while the 1980s fund returned 10.72 per cent, and those born in the 70s earned 9.73 per cent.

The essential reason for this performance is that younger lifestage funds are more heavily invested in higher growth and higher risk assets, such as shares, which have generally performed quite well throughout the financial year.

And conversely, for those in born in the 1940s and 50s returns are lower, though certainly positive, as their funds are invested in lower returning, defensive assets such as cash and fixed income. So their respective returns of 3.05 per cent and 5.09 per cent are solid results considering the asset class exposure for those assets. (Because people closer to or in retirement have less time to recover any losses from their investments, so have a more conservative mix to protect their balance.)

ANZ Smart Choice Super lifestage fund performance (%)

Fund
(decade of birth)

3 months

6 months

1 year

3 years (p.a.)

1940s

0.87

2.13

3.05

3.98

1950s

0.95

2.61

5.09

5.51

1960s

1.13

3.37

7.72

6.58

1970s

1.24

3.91

9.73

7.35

1980s

1.31

4.17

10.72

7.82

1990s

1.31

4.24

10.91

7.87

2000s

1.29

-

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 June 30, 2017. p.a. = per annum. Past performance is not a reliable indicator of future performance. The 2000s fund’s inception was on February 18, 2017 and therefore only the 3-month performance data is available.

If you want to do more of a deep dive into how particular assets performed you can check out the ‘Choose your own investment mix’ table below. Just a word of caution; it’s always best to consider your superannuation as a long-term investment. How it performs over 10 or 20 years is much more important than the past three months, for example.

To see your personalised return in your Annual Statement, follow the instructions at the base of this article.

The June quarter

Looking at the ‘3 months’ column in the table above, which covers from March to June, the returns on your superannuation investments remained strong, following the first three months of 2017. (You can click on your decade of birth in the table to read a more detailed explanation of your fund and its performance.)

The driving force behind this was a stronger global economy, with most sharemarkets, where a lot of superannuation funds are invested, gaining throughout the three months to the end of June 2017. There were also solid returns in bond markets.

Returns on investments in Australian shares weren’t as strong, with such factors as weaker retail sales and the ‘big bank’ levy announced in the Federal Budget, limiting gains in local stocks. Overall, super returns would have been stronger had the Australian sharemarket not been held back.

Those ANZ Smart Choice Super members that choose their own investments can see results for different classes of assets below. In the past year we can see just how well share investments performed in Australia and across the world.

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

Fund

3 months

6 months

1 year

3 years p.a.

Cash

0.34

0.68

1.46

1.85

Conservative

0.79

1.92

2.80

3.74

Moderate

0.99

2.75

5.41

5.69

Growth

1.22

3.61

8.74

7.01

Australian equities

-1.25

3.06

12.89

6.62

International equities (hedged)

2.87

7.96

18.07

8.61

International equities (unhedged)

3.18

3.91

13.04

-

Global property

1.58

1.90

0.01

8.13

Global fixed interest

0.94

1.43

-0.08

4.03

Australian fixed interest

0.77

-

Global Smaller Companies*

3.15

2.93

15.27

 

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 June 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 month performance data is 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 personalised return in your Annual Statement

Members across the ANZ Smart Choice Super suite of products can see a personalised rate of return for their account for the 2016-17 financial year via their Annual Statement.

For all members of ANZ Smart Choice Super and Pension product, statements are online and available now.

Members in the ANZ Smart Choice Super for employers and their employees product, can see their statement online from mid-September onwards.

To access your Annual Statement

  1. Log into ANZ Internet Banking
  2. Select your ANZ Smart Choice Super account
  3. From the Snapshot page navigate to the Transactions page from the menu bar
  4. Select “View Statements” and download the PDF.

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

Super Insights

September - 2017