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In this update... |
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Welcome to your April AvSuper bulletin
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MySuper legislation comes into effect on 1 July 2013 and AvSuper is one of the first 10 funds to be granted a MySuper licence. We will be contacting all members affected by this change, although there will be little impact on most members. For those of you in Canberra, we'd love to see you at Commonwealth Park on 12 May for the Mothers Day Classic. And if you're not walking/running, we'd appreciate some volunteer assistance, too. If not in Canberra, we hope you'll support this event in your area, too. I would also like to remind you that the financial year is ending soon so time is running out if you want to make contributions to qualify for a co-contribution or maximise your contributions below Government thresholds.
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March 2013 Investment Update |
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Markets rally but risks continue to shake investor sentimentIn what has become a consistent recent theme, equity markets edged higher in response to the various stimulatory activities of the major economic zones and improved investor sentiment. The US S&P500 index managed to reach new all time highs by quarter end – an extraordinary result considering recent sentiment in relation to Europe and China, as well as the automatic US budget cuts which will remove US$85B from US agency budgets between October 2012 and the end of March. Late in the quarter, investor confidence was shaken by events in Cyprus and the possible implications for the broader European region. In China, recent Purchasing Managers Index and CPI data disappointed which trickled-down to effect commodities, which generally struggled over the quarter with the exception of Gas which returned 20%.
The MSCI World
ex-Australia Index (hedged in $A) was up 10.6% over
the quarter. With the $A strengthening against all
major currencies, unhedged returns (in $A) were
slightly weaker at 7.4%. The US (10.7%), the UK
(9.7%) and Japan (21.5%) markets posted excellent returns
over the quarter, while the Euro region generally
posted more subdued returns due to concerns about Cyprus.
The
S&P/ASX300 Accumulation Index posted an excellent
result, returning 8.0% over the quarter, but
underperformed in hedged global equities. Resources were once again the main detractor
from the overall Index performance due to the
Materials sector (-8.5%) significantly lagging the
broader market as the only sector
posting a negative result over the quarter. Strong
double digit performance was achieved by the
Industrials, Consumer Discretionary, Consumer
Staples, Financials and IT sectors. Energy,
Telecoms, and Utilities lagged the broader index but
still managed to achieve solid absolute performance
while Health Care performed in line with the broader
market.
Recent events in Cyprus
emphasize that the market recovery is still
vulnerable to shocks and rapid changes in sentiment. For the time being, investor sentiment
appears to be split between the view that
the recent market rally isn’t supported by earnings
growth, and a view that there is a
‘weight of money’ moving from bonds to equities
which will continue to support equity prices. |
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Further AvSuper related market insights are
also provided. |
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Accumulation Returns (net of fees and taxes) to 31 Mar 2013 |
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Income Stream Investment Returns |
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Past performance may not be an indicator of future performance. Taxes generally do not apply for income stream accounts. |
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AvSuper News |
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MySuper licence granted - AvSuper is one of the first 10 funds to get a MySuper licence so will be offering this from 1 July 2013. AvSuper was able to meet the new requirements with minimal changes and is now able to accept employer default contributions into the AvSuper Fund. Welcome to Andrew Cooke - the AvSuper Trustee consists of eight Directors and we are pleased to announce our newest Director is Andrew Cooke. Investments app – we are working on a mobile app to help you keep up to date with investment information. If you would like to be one of the first to see the app and give us some feedback before our launch, please contact us via email. We can do a search for lost super on your behalf – simply give us permission (by calling, emailing or writing to us) to use your TFN to search the ATO database. It costs you nothing and we’ll let you know what we find. Mothers
Day Classic – AvSuper is supporting the MDC
in Canberra on 12 May at Commonwealth Park. We’d love
our members to walk or run, too, or sponsor us to help
fight against breast cancer. Or give us a call if you
can volunteer with us. |
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AvSuper
is interested in your opinion so please let us know
if you have any feedback about the bulletin |
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Did you know you can get emails as soon as we put anything onto the news section of our website? You can subscribe on www.avsuper.com.au/news at any time. |
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Contact us |
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