Download The Good Times Keep Rolling

Media Release
25 April 2007
March is Super but lags 2006 Performance!
Highlights (Median Fund#)
The month of March 2007
1.00%
Financial year to 31 March 2007
11.42%
Rolling 1 year return to 31 March 2007
11.05%
Rolling 3 year return to 31 March 2007
14.37% pa
Rolling 5 year return to 31 March 2007
9.77% pa
Rolling 7 year return to 31 March 2007
8.25%
Jeff pa
Bresnahan,
Rolling 10 year return to 31 March 2007
9.21% pa
Managing
Director, SuperRatings Pty
Ltd
# SuperRatings’ SR50 Balanced Index™ is the median of the 50 largest balanced investment options with exposure to growth
style assets of between 60% and 76%. Over 80% of Australians in our major super funds are invested in their fund’s default
investment option which in most cases is the balanced investment option. Returns are net of fees and tax.
Negative returns on property, international equities and fixed interest for the
month of March did nothing to halt the ongoing strength of Australia’s major
super funds with the median balanced investment option returning 1.00% for the
month. This was solely attributable to a raging Australian equity market which
returned investors with a median of 3.01% for the month, after fees and taxes.
This now brings the financial year to date median balanced option up to 11.42%
and the rolling results over 1, 3 and 5 years to 11.05%, 14.37% and 9.77%
respectively.
Top 10 Super Returns for 9 Months ended 31 March Despite
this,
financial
year
2007
to
31/03/07
Balanced# Investment Options taken from SR50 Balanced
performance
Index
lags
the
9 Months to
equivalent
2006
Fund and Option Description
31 March 2007*
YTD performance
1 Catholic Super Fund – Balanced
14.5%
of
15.2%,
so
2 Telstra Super Corp Plus – Balanced
13.4%
the end result
3 JUST Super - Balanced
12.8%
for the 2006/07
year
will
4 AustSafe Super - Balanced
12.8%
obviously
5 AMP CustomSuper – AMP Balanced Growth
12.8%
depend
heavily
6 Navigator SuperSolutions – Employer- Pre Select
12.7%
on
how
the
Growth Fund
markets
finish
7 Mercer Super Trust – Mercer Growth
12.6%
off the year.
8 ASGARD Employer Super – SMA Balanced
12.5%
Irrespective,
things
are
9 Legg Mason – The Corporate Super MT – Balanced
12.4%
Trust
looking
good
10 SunSuper Solutions - Balanced
12.4%
for
Australians.
Top Quartile
12.2%
SuperRatings’ Median Index
11.4%
Bottom Quartile
11.1%
Suite 3205, Australia Square, Level 32, 264 George Street Sydney NSW 2000
Balanced Fund Options with between 60% and 76% of assets in growth style
investments.
T 02 9247 1466 F 02 9247 8249 [email protected]
*All results are net of fees and tax
www.superratings.com.au
1
Suite 3205, Australia Square, Level 32, 264 George Street Sydney NSW 2000
T 02 9247 1466
F 02 9247 8249
[email protected]
www.superratings.com.au
1
Media Release
25 April 2007
Commentary
It seems like déjà vu, but balanced
portfolios seem determined not to
take
a
backward
step
as
the
financial year rolls on. Even with
three major asset classes going
backwards
for
the
month
(International Shares – minus 0.5%;
Property – minus 1.69% and Fixed
Interest – minus 0.10%), Australian
equities stepped up to the plate to
overcome their combined negative
effect with a monstrous 3.01% net
return for the month.
The ongoing strength of markets, and
hence Australia’s major
superannuation funds, continues to
lift long term results with the
median 7 year performance now at
8.25% and 10 year performance at
9.21% for balanced investment
options. Both compare favourably
against most funds’ long term
objectives of CPI plus 3.5% per
annum.
interesting to note the continued
slide in exposures to Fixed Interest
with the average weighting dropping
from 26% in 2002 to 19% in 2006.
Nearly all of this money has found
its way into “alternative”
investments such as Private equity,
Hedge Funds and Infrastructure, with
asset allocation in this area
increasing from just 4% in 2002 to a
current 9%.
With a number of funds now taking
significant positions in alternative
style assets it will be interesting
to see the variations in returns
over time as the quality of assets
comes to the fore.
Whilst most balanced options
continue to retain a steady
weighting to traditional markets
such as Australian equities (32%),
International equities (25%),
Property (9%) and Cash (6%), it is
12 Month Results
A complete table of the highest and lowest results for the 12 months
ended 31 March 2007 within each investment category (covering all funds)
is as follows:
Option Type
Highest
Median
Lowest
Balanced (60%-76%
Growth)
14.7
11.1
7.2
Growth (77%-90%
Growth)
14.8
11.8
8.7
Australian Shares
22.9
19.1
13.8
Suite
3205,
Australia
Square,
Level
32,
264
George
Street
Sydney
International Shares
10.7
1.7
-8.3NSW 2000
T
02 9247 1466 F 02 9247 8249 27.8
[email protected]
www.superratings.com.au
Property
21.6
13.7
Cash
6.0
5.1
3.1
2
Media Release
25 April 2007
In other investment options the financial year to date results have
covered a wide range:
9 Month period 1 July 2006 to 31 March 2007
Growth Options SuperRatings Index
12.9
%
Australian Share Options SuperRatings Index
20.1
%
International Share Options SuperRatings Index
6.5%
Property Options SuperRatings Index
18.7
Capital Stable Options SuperRatings Index
7.1 %
Cash Options SuperRatings Index
3.9 %
%
Other key results in respect of the rolling five year results to 28
March 2007 include:
5 Year Growth Option SuperRatings Index
10.0 % p.a.
5 Year Australian Share Option SuperRatings Index
p.a.
15.6
5 Year International Share Option SuperRatings Index
p.a.
5 Year Property Option SuperRatings Index
2.5 %
13.3% p.a.
5 Year Capital Stable Option SuperRatings Index
6.9% p.a.
5 Year Cash Option SuperRatings Index
4.5
As can be seen from the above the
choice of a particular investment
option is critical to all
Australians’ financial future. So
aside from the challenge of choosing
an appropriate fund Australians are
then faced with the choice of which
option to choose within such a fund.
This probably explains why more than
4 out of every 5 Australians
currently sit in their fund’s
default option which in most cases
is the “Balanced” option with some
70% of assets exposed to growth
%
% p.a.
style assets with the remaining 30%
in defensive style assets.
SuperRatings’ complete Fund Crediting
Rate Survey covers over $280 billion
worth of superannuation assets and
monitors fund returns to over 13
million Australians through
Australia’s major superannuation
funds. The survey specifically
excludes Pooled Superannuation Trusts
(PST’s) as they are institutional
based investment pools.
Suite 3205, Australia Square, Level 32, 264 George Street Sydney NSW 2000
T 02 9247 1466
F 02 9247 8249
[email protected]
www.superratings.com.au
3
Media Release
25 April 2007
Additional Return and
Database Information
We believe our database to be
the
largest
in
Australia
dealing
with
multi-employer
superannuation funds, where the
great majority of Australians
have their retirement benefits
invested. We now update our
website monthly to show the top
5 performing funds together
with the medians over all time
periods
for
the
following
investment options:
•
•
•
•
•
•
•
•
•
•
•
Balanced
Growth
Australian Shares
International Shares
Capital Stable
Property
Cash
Fixed Interest
High Growth
Secure
Conservative Balanced
influence a consumer’s decision in
relation to a particular financial
product/s or an interest in a
particular product/s. SuperRatings
does not provide financial product
advice for the purposes of the
Corporations Act 2001. Consumers
should obtain independent legal or
financial advice before making any
financial decision.
“Smart” web-based
System
SuperRatings web-based “Smart” is a
leading research database hub
providing a significant number of
institutions with up to date
information on over 200 of
Australia’s largest super fund
products. Clients now include
Financial Planning firms,
superannuation funds and
superannuation administrators.
Who Is SuperRatings?
Simply go to our website
(www.superratings.com.au)
and
click on “Latest Investment
Returns” to view the various
tables. Our website will be
updated
with
all
31
March
results
this
week.
The
“SuperRatings’ SR50 Index” as
shown in the tables is the
median result of the largest 50
options. We welcome any Media
enquiries regarding any of the
information
held
on
our
database and where possible we
will
provide
customised
tables/graphs for your use.
SuperRatings created the
superannuation ratings industry
in Australia. The company was
founded in 2002 by its Managing
Director, Jeff Bresnahan, with
the aim to “To Encourage And
Where Necessary Create
Disclosure Within The
Superannuation Industry”.
The company has quickly grown
to become recognised as the
leading independent research
and ratings firm in the multiemployer superannuation market.
For more information please
call:
Jeff Bresnahan on 02 9247 1466
or 0411 472 470
RELEASE ENDS
Disclaimer: The information used in
compiling SuperRatings’ Investment
Survey comes from sources considered
reliable. It is not guaranteed to be
accurate or complete. The purpose of
the Investment Survey is not to
© SuperRatings Pty Ltd. This
publication is copyright. Except in
accordance with the Copyright Act 1968
(Cth), no part of this publication
December be in any form or by any
means reproduced or communicated to
Suite 3205, Australia Square, Level 32, 264 George Street Sydney NSW 2000
T 02 9247 1466
F 02 9247 8249
[email protected]
www.superratings.com.au
4
Media Release
25 April 2007
the public without the prior written
permission of SuperRatings Pty Ltd.
Suite 3205, Australia Square, Level 32, 264 George Street Sydney NSW 2000
T 02 9247 1466
F 02 9247 8249
[email protected]
www.superratings.com.au
5