skip to log on skip to main content
VoiceOver users please use the tab key when navigating expanded menus

ANZ Smart Choice Super report: June 2019


Published 8 August 2016

2018/19 has been a strong year for your super returns

ANZ Smart Choice Super lifestage investment options' 1 year performance

Unlike many other super funds, ANZ Smart Choice Super doesn't believe that one investment suits everyone. Expand your lifestage section below to see how your super has been performing.

 

 

 

Investment Option

3 months

1 year

3 years (p.a)

5 years (p.a.)

1940s

2.76

7.13

5.16

4.87


Note: Returns quoted use the unit price which is calculated using the net asset values for the relevant month end. Please note that all returns are after the deduction of investment fees. Reporting data is to June 28, 2019 (p.a. = per annum). Past performance is not a reliable indicator of future performance. (The inception of the 2000s fund was on February 18, 2017 so there is no performance data available for three and five years.)

 

 

Investment Option

3 months

1 year

3 years (p.a)

5 years (p.a.)

1950s

3.06

7.62

6.21

6.01


Note: Returns quoted use the unit price which is calculated using the net asset values for the relevant month end. Please note that all returns are after the deduction of investment fees. Reporting data is to June 28, 2019 (p.a. = per annum). Past performance is not a reliable indicator of future performance. (The inception of the 2000s fund was on February 18, 2017 so there is no performance data available for three and five years.)

 

 

Investment Option

3 months

1 year

3 years (p.a)

5 years (p.a.)

1960s

3.67

8.29

7.96

7.18


Note: Returns quoted use the unit price which is calculated using the net asset values for the relevant month end. Please note that all returns are after the deduction of investment fees. Reporting data is to June 28, 2019 (p.a. = per annum). Past performance is not a reliable indicator of future performance. (The inception of the 2000s fund was on February 18, 2017 so there is no performance data available for three and five years.)

 

 

Investment Option

3 months

1 year

3 years (p.a)

5 years (p.a.)

1970s

4.12

8.78

9.35

8.07


Note: Returns quoted use the unit price which is calculated using the net asset values for the relevant month end. Please note that all returns are after the deduction of investment fees. Reporting data is to June 28, 2019 (p.a. = per annum). Past performance is not a reliable indicator of future performance. (The inception of the 2000s fund was on February 18, 2017 so there is no performance data available for three and five years.)

 

 

Investment Option

3 months

1 year

3 years (p.a)

5 years (p.a.)

1980s

4.34

9.05

10.02

8.56


Note: Returns quoted use the unit price which is calculated using the net asset values for the relevant month end. Please note that all returns are after the deduction of investment fees. Reporting data is to June 28, 2019 (p.a. = per annum). Past performance is not a reliable indicator of future performance. (The inception of the 2000s fund was on February 18, 2017 so there is no performance data available for three and five years.)

 

 

Investment Option

3 months

1 year

3 years (p.a)

5 years (p.a.)

1990s

4.35

9.04

10.16

8.63


Note: Returns quoted use the unit price which is calculated using the net asset values for the relevant month end. Please note that all returns are after the deduction of investment fees. Reporting data is to June 28, 2019 (p.a. = per annum). Past performance is not a reliable indicator of future performance. (The inception of the 2000s fund was on February 18, 2017 so there is no performance data available for three and five years.)

 

 

Investment Option

3 months

1 year

3 years (p.a)

5 years (p.a.)

2000s

4.23

8.78


Note: Returns quoted use the unit price which is calculated using the net asset values for the relevant month end. Please note that all returns are after the deduction of investment fees. Reporting data is to June 28, 2019 (p.a. = per annum). Past performance is not a reliable indicator of future performance. (The inception of the 2000s fund was on February 18, 2017 so there is no performance data available for three and five years.)

Smart Choice Super’s Lifestage investment options performed strongly in the past year, with returns in the range of 7.13% to 9.05%, driven by solid returns across both share and fixed interest (bond) markets. 

The SuperRatings survey of superannuation returns found that in 2018/19 all of our Lifestage investment options outperformed the median of MySuper default options. Importantly, longer term returns have also been consistently strong. Returns for our 1970, 1980s and 1990s Lifestage investment options have returned more than 8.0% over 5 years. SuperRatings also highlighted the strong returns (10.16%) over the three years to 30 June 2019 for our 1990s Lifestage investment option — find out more about our millennial super makeover here

The graph above shows how your investment option (based on your decade of birth) has performed in the last quarter (April to June), over the past 12 months, and over the past three and five years. The performance of your superannuation for the final quarter to 30 June in particular reflected the strong returns in the Australian share market.  You can read more about what happened in markets below.

ANZ’s Chief Investment Officer, Mark Rider, said “Smart Choice Super in the past year has provided robust returns for our members in what has been a volatile year for financial markets.  The spreading of Smart Choice’s investments across a range of share and bond markets has resulted in strong returns for both younger and older investors. This diversification has also served our Smart Choice members well over the longer term.”

Diversification is fundamental to ANZ’s dynamic lifestage investment philosophy, which is used to build a portfolio across assets including Australian and international shares, cash, property and fixed interest securities, based on your age and time to retirement.

Returns across life-stages explained 

Younger members continued to receive higher gains because they are more heavily invested in ‘growth assets’ such as shares. These assets tend to reap the highest returns, but as markets can also fall, it’s possible for investors (that is, super fund members) to lose out when they do. For younger members, there’s time to recoup from periods of volatility, whereas that may not be the case for older super members.  

Our ANZ Smart Choice Super – smart investments tool is easy to use and explains how you are invested over time.

ANZ Smart Choice Super choose your own investment mix performance (%)

Investment Option

3 months

1 year

3 years (p.a)

5 years (p.a.)

Australian fixed interest

2.43

7.49

Australian shares

7.25

11.21

12.17

8.67

Cash

0.34

1.37

1.40

1.66

Conservative

2.37

6.30

4.45

4.36

Global fixed interest

2.33

6.00

2.31

3.82

Global property

0.05

7.21

4.03

7.31

Global smaller companies

2.80

2.22

11.25

Growth

3.65

8.23

8.44

7.52

International shares (hedged)

3.00

5.56

11.06

8.25

International shares (unhedged)

4.66

10.89

12.52

Moderate

3.07

7.58

6.42

6.19


Note: Returns quoted use the unit price which is calculated using the net asset values for the relevant month end. All returns are after the deduction of investment fees. Reporting data is to June 28, 2019 (p.a. = per annum). Past performance is not a reliable indicator of future performance. Note the ‘Australian fixed income’ fund’s inception was on February 18, 2017 and therefore the three and five-year performance data is not available. Similarly, ‘international shares (unhedged)’ and the ‘global smaller companies’ started on May 25, 2015 so the five-year performance data is not available. The ‘global small companies’ investment option is not available to members of ANZ Smart Choice Super and Pension.

Results for ANZ Smart Choice Super choose your own investment mix were also positive, as you can see in the table above, with Australian shares the outstanding performer, and less robust performances from global property and cash (a defensive asset).  

Members of ANZ Smart Choice Super for employers and their employees can access the latest returns across the full suite of investment choices online or by visiting the ‘Investment portfolio’ page via their ANZ Smart Choice Super account in ANZ Internet Banking.

(Note: The above investment returns are not applicable to QBE members. These members can access their individual returns via ANZ Internet Banking.)

Market and economic snapshot 

Share markets have performed strongly in the first half of 2019, despite a correction in May that only the Australian market avoided. 

Since our last update, the US Fed has moved from a neutral position on interest rates to indicating that a cut is probable. Markets responded positively to this change, as well as to a temporary thawing in trade relations between the US and China.

However, there’s no denying that we’re in a state of global economic uncertainty, with US-China trade relations the biggest threat to economic growth and stability. US tariffs on Chinese goods will reduce China’s economic growth (gross domestic product), but that’s not the only consequence. The uncertainty itself disrupts supply chains globally and makes it more difficult for companies to invest. China is a major player in the global economy, so any slowing of growth there is inevitably going to lead to slower growth across other major economies.

In Australia, the RBA cut rates by 0.25 per cent in June, hoping to bolster the slowing economy. Although wages growth remains weak, and inflation is stubbornly below the RBA’s target range, there are signs that house prices in Sydney and Melbourne have bottomed. Iron ore prices continue to be strong. 

RBA Governor Philip Lowe has argued that Australia’s outlook is in fact “reasonable” with expectations of a strengthening economy later in the year, based on: 

  • low interest rates
  • increased growth in household disposable income
  • infrastructure investment and a strong resource sector.

The Australian dollar is still sitting at US70c, moving very little in the first six months of the year.

How is your super tracking?

  1. Check your super balance by logging onto ANZ Internet Banking > click on super
  2. Learn more about taking care of your super and future
  3. Check out how three people, across the generations, went through a super makeover.

 

Explore how Superannuation can work for you

Smart Choice Super performance

Article

ANZ Smart Choice Super report: March 2019
 

A market rebound this year means ANZ Smart Choice Super has reaped some strong returns.

Article

2019 started on a positive note: where to now?
 

Mark Rider explains the dramatic market shifts from December 2018 to March 2019, and what the rest of the year might look like.

Article

ANZ global market outlook 2019:
a challenging year
 

As the global economy slows the sharemarket should be viewed with increasing caution.

OnePath Custodians Pty Limited (OnePath Custodians) ABN 12 008 508 496, AFSL 238346, RSE L0000673 is the trustee of the Retirement Portfolio Service (ABN 61 808 189 263, RSE R1000986) (Fund) and issuer of the interests in “ANZ Smart Choice Super”, a suite of products consisting of ANZ Smart Choice Super, ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees.

ANZ Smart Choice Super is issued by OnePath Custodians and distributed by Australia and New Zealand Banking Group Limited (ANZ) 11 005 357 522. ANZ is an authorised deposit taking institution (Bank) under the Banking Act 1959 (Cth). OnePath Custodians is the issuer of this product but is not a Bank. Except as described in the relevant Product Disclosure Statement, the obligations of OnePath Custodians are not deposits or liabilities of ANZ or its related group companies. None of them stands behind or guarantees the issuer or the capital or performance of any investment. Such investment is subject to investment risk, including possible repayment delays and loss of income and principal invested. Returns can go up and down. Past performance is not indicative of future performance.

This information is subject to change. You should read the relevant Financial Services Guide (FSG), PDS, product and other updates (for open and closed products) available at ANZ.com.au/super and consider whether the product is right for you before making a decision to acquire, or to continue to hold the product. Updated information will be available free of charge by calling Customer Services on 133 665.

Taxation law is complex and this information has been prepared as a guide only and does not represent tax advice. Please see your tax adviser for independent taxation advice.

The information on insurance cover is a summary only of the terms and conditions applying to the insurance cover. To the extent there is any inconsistency with the terms of the insurance cover provided by the insurer, the terms of the insurance policy will prevail.

The information provided is of a general nature and does not take into account your personal needs, financial circumstances or objectives. Before acting on this information, you should consider the appropriateness of the information, having regard to your needs, financial circumstances or objectives. The case studies used in this article are hypothetical and are not meant to illustrate the circumstances of any particular individual. Opinions expressed in this document are those of the authors only.

ANZ does not represent or guarantee that access to the ANZ Internet Banking or the ANZ App will be uninterrupted. Temporary service disruptions may occur. ANZ recommends that you read the ANZ App Terms and Conditions available at anz.com and consider if this service is appropriate to you prior to making a decision to acquire or use the ANZ App.

In addition to their salary, ANZ staff members may receive monetary or non-monetary benefits depending on the product they are selling or providing advice on.

Apple, the Apple logo, iPhone and iPad are trademarks of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc.

You need Adobe Reader to view PDF files. You can download Adobe Reader free of charge.