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Welcome to your July bulletin

As we close out another financial year, I am delighted to be able to again report to members great investment returns for AvSuper's investment options.  Our default option - Growth (MySuper) has provided members with 12.9% for the year.  Returns for our other investment options are below and more information will be provided to members with your annual member statement, currently scheduled for mailing to you in late August 2014.

And statement time is usually a good time for many members to review their super arrangements - how many super accounts do you have?  If you've been meaning to roll them all over to one account - it just got even easier, with the launch of our new online eRollover service.  Visit our website to find out more.
 

Michelle Wade,
CEO

Finally, a thank you shout out to those of our members who recently participated in our annual member satisfaction survey - we're looking forward to seeing your feedback and reviewing your suggestions for ways we can make AvSuper even better for members.


June 2014 Quarterly Investment Update

US first quarter GDP was revised sharply lower in June, however, investors attributed this to harsh winter weather and focussed their attention on data releases that are more representative of current economic conditions. First quarter growth in Japan marked a significant acceleration relative to past quarters and data releases in the UK were also strong. In contrast, conditions in the Eurozone remain depressed.

The MSCI World ex-Australia Index (hedged into AUD) rose 5.3% over the quarter. The US produced a strong absolute return in local currency terms and Japanese stocks performed well towards the end of the quarter. Emerging markets outperformed developed markets on an unhedged basis, while Energy stocks were the strongest global sector performers due to fears of an oil shortage from the Iraq turmoil.

The S&P/ASX300 Accumulation Index (0.9%) underperformed hedged overseas equities as consumer confidence fell sharply following the release of the Australian federal budget. Small cap stocks underperformed large cap stocks, while Property Trusts were the strongest performing sector and also outperformed unlisted Australian property.

Longer and shorter dated bond yields fell in the US and Europe. US yields decreased as investors scaled back interest rate rise expectations, while Eurozone yields fell in response to the ECB’s stimulus announcement. UK yields fell early in the quarter but finished broadly flat. Australian yields fell as the market priced lower economic growth following May’s federal budget, resulting in Australian bonds outperforming global bonds (hedged into AUD). Global investment grade credit outperformed global government bonds due to higher running yields, while Australian inflation-linked bonds outperformed Australian nominal bonds due to longer durations (i.e. higher levels of interest rate exposure) in a falling rate environment.
 

Scott Malpass
Investment Officer

The Australian Dollar (AUD) strengthened against most major developed market currencies. The AUD continues to be one of the strongest performing currencies as high domestic interest rates relative to the developed world average and low volatility in currency markets has increased the attractiveness of the carry trade. The British Pound was the strongest performing major currency as investors responded to the prospect of rising interest rates in the UK.


Investment Returns (net of investment fees and taxes) to 30 June 2014

Investment Option

Quarter

Financial year to date

5 years*(annualised)

Growth (MySuper)#

2.3

12.9

9.5

Conservative Growth

2.6

7.9

6.8

Stable Growth

3.4

10.6

8.3

High Growth

2.4

15.8

11.6

Australian Shares

1.1

18.4

10.3

International Shares

3.6

14.3

12.3

Cash

1.8

3.7

3.7

Past performance may not be an indicator of future performance.
# Your super will be invested in our Growth (MySuper) option if you don't make an investment choice.
* Some options were started less than five years ago.
The investment returns for the quarter and the financial year to date detailed above are real investment returns for the period shown.

AvSuper News

Annual statements are being prepared! We will soon be mailing them out so now is a great time to check we have your current contact details. The statements and accompanying report are important documents about YOUR super and YOUR financial future so we strongly recommend you read them.

Contribution caps changed on 1 July – now may be a good time to book an appointment to assess the impact of the new caps on your contribution strategy.

The Financial System Inquiry interim report was released on 15 July. We are currently reviewing it for impact on the Fund and our members and will keep you informed about the report and the Government’s response once it is released.

Welcome to Ross Connors, our new Member Advice Consultant!

We can search for lost super on your behalf – simply give us permission (within Member Online or 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. And you can roll any old super into AvSuper via Member Online, too – no more paper forms to sign and mail!

New deeming rules come into effect on 1 January 2015 so if you are thinking about retiring soon, please read our fact sheet or contact us for advice as the new rules may have a large impact on your income stream.

 


 

Contact us
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1800 805 088
e. avsinfo@avsuper.com.au
web.
www.avsuper.com.au

 

This information is of a general nature only and does not take into account your personal objectives, situation or needs. Before making a decision about AvSuper, consider your requirements, our privacy statement and the relevant Product Disclosure Statement (PDS). For a copy call us or download one from www.avsuper.com.au. AvSuper Pty Ltd (ABN 46 050 431 797,AFSL 239078) is the Trustee of the is the Trustee of the AvSuper Fund (ABN 84 421 446 069).

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