Video transcript
Hi, I'm Mal Smith, Chief Executive of REI Super, with a brief investment update.
For REI Super the quarter ended 31 March 2017 was again a positive one. Our Balanced option continues to provide members with excellent short-term and long-term returns.
Investment market showed surprisingly steady growth, with most asset classes increasing in value by a small amount. At REI Super our various portfolios are benefiting from our short-term as well as our long-term investment decisions.
We’ve done particularly well in our investments held offshore due to the effects of currency. For example the announcement in April of the forthcoming election in the UK helped strengthen the pound sterling relative to the AUD dollar and this boosted our returns from currency shortly after the end of the quarter.
Investment positions in Japan, international bonds and emerging markets have also added significant value during the current financial year. And within international and Australian shares asset classes and more defensive stance has seen as broadly match the market indices.
In terms of the investment outlook, we're expecting markets to remain volatile particularly, in response to a raft of elections in Europe, in the UK, France and Italy. There are some grounds to be cautiously optimistic about European and US future growth. However, president Trump still hasn't succeeded in getting many of his proposals passed by Capitol Hill and in this environment markets remain somewhat sceptical. In addition the US markets presently priced to perfection in relation to future company earnings.
So in terms of this outlook, in this environment, it's still prudent to remain cautious, and protect our portfolios where we can from market shocks. Last year, for example, REI Super was identified as only one of eight funds that doubled their members’ money since the global financial crisis. So we want to make sure we continue this prudent approach in investing our members’ savings, carefully balancing long-term growth with caution across the investment cycle.
Please note:
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. Members should obtain and read the Product Disclosure Statement for REI Super before making any decisions.
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.
REI Superannuation Fund Pty Ltd ABN 68 056 044 770 AFSL 240569. RSE L 0000314 REI Super ABN 76 641 658 449 RSE R1000412 MySuper unique identifier 76641658449129 February 2017