For REI Super the quarter that ended 31 March 2017 was again a positive one. Our Balanced option continues to provide our members with excellent short and long-term returns.
With a net return of 2.26% for the quarter, our Balanced option is also continuing to deliver strong long-term returns, with an average annual net return of 8.24% over the last three years and net return of 9.58% per annum over the last five years. These are excellent long-term returns for REI Super members and exceed the returns of the median* super fund balanced option.
Click here for a full table of investment returns for all our investment options.
Investment markets were relatively calm and they again showed surprisingly steady growth during the quarter, 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 for our investments held offshore due to the effects of currency. For example, the announcement in April of the forthcoming election in the UK helped to strengthen the pound sterling relative to the Australian dollar and this boosted our returns from currency shortly after the end of the quarter.
Our investment positions in Japan, international bonds and emerging markets such as South Korea, Taiwan and Mexico have added significant value during the current financial year.
Investment outlook
There are some grounds to be cautiously optimistic about European and US future growth, but we are expecting markets to remain volatile – partly in response to a series of elections in Europe (in the UK, France and Italy).
Additionally, President Trump still hasn’t succeeded in getting many of his proposals passed by Capitol Hill. Markets remain somewhat sceptical as a result of this.
Our strategy
In this environment it’s prudent to remain cautious and to protect our portfolios where we can from market shocks, with a focus on delivering strong long-term returns.
This strategy has proved to be very successful for our members to date. Last year for example REI Super was identified as one of only eight super funds that had doubled its members’ money since the Global Financial Crisis.
We want to make sure we continue this prudent approach of investing our members’ money carefully, with long-term growth as well as caution across the investment cycle.
*SuperRatings Fund Crediting Rate Survey, March 2017, SR50 Balanced (60-76) Index
Note: Past returns are no guarantee of future performance, and investment returns of less than one year should not be relied upon as any guide to future performance.