REI Super delivers a double-digit return, despite continued volatility in markets
It was an interesting but a challenging year for investment markets, with some significant peaks and troughs in quarterly returns.
The main factors influencing investor sentiment during the year were the debt situation in Greece and volatility in the Chinese stock market, as well as continued speculation about the timing of interest rate increases around the world.
Despite the fluctuations in the markets, REI Super’s Trustee Super Balanced option delivered a double-digit net investment return of 10.66% to members for the year ended 30 June 2015.
This is more than one percent higher than the net return of the median* super fund balanced option for the same period, which was 9.6%.
Where our returns came from
Our prudent and diversified investment strategy has continued to help us capitalise on opportunities for gains from strongly performing sectors of the market and to minimise losses from badly performing sectors. This in turn has helped to preserve and grow members’ savings.
In recent months our investment in long-term assets such as unlisted property and our very targeted investments in Japanese shares and emerging markets have helped to boost returns. Our reduced exposure to Australian shares also helped preserve capital.
We have also been increasing cash levels in the Trustee Super Balanced option for some time and this has proven to be a very helpful strategy. Cash provides capital stability in down markets and it’s an important investment in an environment when many other investments appear expensive, and more likely to fall in value. Having cash on hand means the Fund can buy other investments when they eventually fall in price and become good investment opportunities.
*As measured by SuperRatings SR50 Balanced (60-76) Index for June 2015
Net (after fees and taxes) investment returns for REI Super’s main investment options
for the period ended 30 June 2015
|
|
3 months to 30 June 2015 (%)
|
12 months to 30 June 2015 (%)
|
3 years (average annual % pa)
|
5 years (average annual % pa)
|
10 Years (average annual % pa)
|
|
Super Growth
|
-1.44
|
12.03
|
14.63
|
10.93
|
6.08
|
|
Trustee Super Balanced
|
-1.05
|
10.66
|
12.17
|
9.60
|
6.12
|
|
Super Stable
|
-0.3
|
6.06
|
7.10
|
6.31
|
4.76
|
|
Premium Income
|
-0.72
|
3.63
|
N/A (option only available from 2013/2014
|
N/A (option only available from 2013/2014
|
N/A (option only available from 2013/2014
|
|
Super Cash
|
0.42
|
2.08
|
2.32
|
3.05
|
4.02
|
Future investment performance can vary from past performance, and you should not base your decision to invest in REI Super simply on past performance. Past earning rates are not an indicator of future earning rates. The investment returns of REI Super are not guaranteed, and the value of the investment may rise or fall.
The information contained in this article does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation.