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Challenging quarter ends on upswing

Super funds were hit by market volatility early this year, but there are some bright spots.

Following a volatile start to the year, markets rallied in March as oil prices recovered and consumers became more positive.

Actions taken by the European Central Bank and China to encourage growth in their economies have also helped the market turn around.

SuperRatings' median fund returns reflected market performance*, with March seeing an improvement in investor confidence and the average Balanced Option for Australian super funds rising by 1.7 per cent for the month. However, this was let down by poor returns experienced in January and February resulting in a median fund return of negative 1 per cent for the quarter in total.

ANZ Smart Choice Super performance

Those portfolios with lower exposure to growth assets fared better during the first quarter of the year. As can be seen in the table below, the 1940s and 1950s lifestage options in particular were shielded from the negative effects of market volatility.

While some portfolios experienced minor negative returns this quarter, it’s important to remember that superannuation is a long-term investment to achieve retirement goals, rather than an investment focussed on short-term returns.

For more detail on the markets, read the latest outlook from ANZ Chief Investment Officer Stewart Brentnall.

Please refer to the below table for the latest investment returns, as at 31 March 2016.

Lifestage investments

Option 3 months 6 months 1 year 3 years (p.a.)
1940s 0.75% 1.77% 0.47% 4.22%
1950s 0.02% 2.04% -0.83% 5.91%
1960s -0.79% 1.96% -2.34% 6.67%
1970s -1.24% 2.01% -3.22% 7.03%
1980s -1.53% 1.86% -3.64% 7.32%
1990s -1.62% 1.89% -3.75% 7.35%

Choose your own investment mix

Option 3 months 6 months 1 year 3 years (p.a.)
Cash 0.47% 0.94% 1.93% 2.22%
Conservative 0.77% 1.78% 0.43% 3.77%
Moderate 0.08% 2.09% -0.72% 5.80%
Growth -0.96% 2.05% -2.68% 6.74%
Australian Equities -2.12% 3.52% -7.41% 5.45%
International Equities -1.80% 3.85% -2.96% 9.50%
Global Property 4.04% 9.53% 4.36% 10.52%
Global Fixed Interest 3.11% 3.52% 3.25% 4.81%

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.

 

Super Insights

June 2016