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

ANZ Smart Choice Super report: September 2020


Published 19 November 2020

Markets continue to recover but challenges still ahead

ANZ Smart Choice Super Lifestage investment options' performance (%)

ANZ Smart Choice Super lifestage investment options 1 year performance graph

Investment Option

3 months

1 year

3 years (p.a.)

5 years (p.a.)

1940s

0.75

-1.63

 4.09

3.92

1950s

1.01

-1.75

 4.38

4.78

1960s

1.57

-2.57

 4.78

5.73

1970s

1.82

-3.23

 5.15

6.50

1980s

1.95

-3.67

 5.28

6.80

1990s

1.90

-3.62

 5.35

6.91

2000s*

1.95

-3.54

 5.15


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 30 September 2020 (p.a. = per annum). Past performance is not a reliable indicator of future performance.  

* The inception of the 2000s fund is 18 February 2017 so there is no performance data available for five years.

 

Based on your decade of birth, the table above shows how your investment option has performed in the September 2020 quarter (the ‘3 months’ figure), and over the past one, three and five years.

ANZ Smart Choice Super’s Lifestage investment options all performed positively during the September 2020 quarter on the back of more encouraging COVID-19 vaccine trial and treatment news, signs of global economic recovery with many countries reopening and continued fiscal and monetary support from governments and central banks respectively.

Over the year to September, the Lifestage funds returned in the range of -1.63% to -3.67% with the economic and recessionary effects of the COVID-19 pandemic heavily impacting these performances. Please read below for an Investment Team update on how the pandemic has affected investment performance in the September quarter .

The SuperRatings survey groups funds together with similar allocations to growth assets. In comparison to those funds with a higher allocation to riskier assets (70-90%), Smart Choice funds performed above the median manager in the 1980s and 1990s Lifestage options over 5 years. However, our funds were more exposed to the market correction with a higher allocation to property (Global Real Estate Investment Trust (REITs)) and Listed Infrastructure, which were adversely affected by the pandemic.

ANZ Smart Choice Portfolio Manager, Manish Utreja, said “We are committed to helping our clients navigate these challenging and uncertain times and maintain a strategic, disciplined approach designed to deliver to longer-term retirement goals.”

 

Click on each heading below to see a particular fund's performance.


Investment Option

3 months

1 year

3 years (p.a)

5 years (p.a.)

1940s

  0.75

 -1.63

   4.09

 3.92


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 30 September 2020 (p.a. = per annum). Past performance is not a reliable indicator of future performance.


Investment Option

3 months

1 year

3 years (p.a)

5 years (p.a.)

1950s

1.01

-1.75

 4.38

4.78


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 30 September 2020 (p.a. = per annum). Past performance is not a reliable indicator of future performance.


Investment Option

3 months

1 year

3 years (p.a)

5 years (p.a.)

1960s

 1.57

 -2.57

 4.78

5.73


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 30 September 2020 (p.a. = per annum). Past performance is not a reliable indicator of future performance.


Investment Option

3 months

1 year

3 years (p.a)

5 years (p.a.)

1970s

1.82

-3.23

5.15

6.50


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 30 September 2020 (p.a. = per annum). Past performance is not a reliable indicator of future performance.


Investment Option

3 months

1 year

3 years (p.a)

5 years (p.a.)

1980s

1.95

-3.67

5.28

6.80


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 30 September 2020 (p.a. = per annum). Past performance is not a reliable indicator of future performance.


Investment Option

3 months

1 year

3 years (p.a)

5 years (p.a.)

1990s

 1.90

-3.62

5.35

6.91


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 30 September 2020 (p.a. = per annum). Past performance is not a reliable indicator of future performance.


Investment Option

3 months

1 year

3 years (p.a)

5 years (p.a.)

2000s*

 1.95

-3.54

5.15

_


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 30 September 2020 (p.a. = per annum). Past performance is not a reliable indicator of future performance.

* The inception of the 2000s fund was on 18 February 2017 so there is no performance data available for five years.

Diversification is important

Diversification is fundamental to ANZ Smart Choice Super’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 Lifestages explained

Younger members (for example those born in the 1990s or 2000s) are more heavily invested in growth assets such as shares. This means these members have seen their super balance most impacted by the market downturn caused by the COVID-19 pandemic over the year. That said, they have since seen continued positive performance as markets rallied between April and August.

Older members (for example those born in the 1940s, 1950s and 1960s) have seen less impact to their super balances over the year as they have more limited exposure to growth assets and more exposure to defensive assets like fixed interest and cash. 

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^

0.74

2.42

4.56

Australian shares

0.32

-8.56

5.10

7.25

Global fixed interest

0.44

2.50

3.75

3.52

Global property

0.95

-19.73

-1.57

1.89

Global smaller companies

2.79

-3.46

4.67

6.47

International shares (hedged)

5.68

5.15

5.92

9.05

International shares (unhedged)

3.55

3.71

10.03

9.01

Cash

0.10

0.57

1.07

1.28

Conservative

0.64

-0.78

3.71

3.62

Moderate

1.01

-1.89

4.38

4.89

Growth

1.59

-2.59

4.85

6.06



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 30 September 2020 (p.a. = per annum). Past performance is not a reliable indicator of future performance.

^ The ‘Australian fixed interest’ fund’s inception was on 18 February 2017 and therefore the five-year performance data is not available.
 The ‘Global smaller companies’ investment option is not available to members of ANZ Smart Choice Super and Pension.

All ‘Choose Your Own’ investment options returned positive gains over the September quarter. International shares provided the standout performance delivering returns of 5.68% for the international shares (hedged) option and 3.55% for the international shares (unhedged) option . The Australian share market gave up much of its July and August gains in September and the Australian shares option returned a modest return of 0.32% for the quarter. 

As lockdown measures continued to be relaxed around the world, global property also staged a turnaround in the quarter returning 0.95%.

Defensive assets such as Australian and international fixed interest, and cash also performed positively in the quarter returning 0.74%, 0.44% and 0.10% respectively.

You can access the ANZ Smart Choice Super returns across the full suite of investment choices online or by visiting the ‘Investment portfolio’ page via your ANZ Smart Choice Super account in ANZ Internet Banking

Market and economic snapshot

The COVID-19 health crisis continues to cause immeasurable human tragedy and suffering and the lockdown and isolation measures that have been put in place to control the spread of the virus have driven a global economic downturn.

While the virus persists, with a devastating impact on society, recent data shows that the world and Australian economies are now beginning to show signs of recovery and we may be starting to emerge from one of the deepest, but also one of the shortest, recessions of the last century. That said, we expect that after the initial bounce the recovery will be be gradual, particularly until safe, effective and widely distributed vaccines are available.

In contrast to the hesitant response to the Global Financial Crisis (GFC), policy makers have responded swiftly with very large stimulus packages which have supported the recovery. However, some areas of the economy are faring better than others. Many service orientated businesses located in central city locations and sectors geared to travel continue to struggle while on-line and suburban sales have lifted.

Despite the uncertainty continuing to make share markets unsettled, most global markets finished the September quarter markedly higher. The positive market performance reflected large stimulus measures, hopes of a viable vaccine, better-than-expected economic data from major economies particularly China and continued outperformance by technology stocks driven by solid earnings through the pandemic.

What may be ahead?

On the positive side of the ledger ultra-low interest rates are likely to provide meaningful support to share markets. Governments also continue to demonstrate their commitment to supporting economic recovery, as demonstrated by the recent Australian Federal Budget where a raft of spending and tax cut measures, designed to grow businesses and create jobs, were announced. Markets have also been buoyed by the Biden presidency and the prospect of a gridlocked Congress which would stall proposed Democrat tax hikes and regulatory measures.

Possible setbacks for markets on the horizon include:

Virus resurgence 

There are fears of a new ‘cold weather wave’ of the virus. Already Europe and the UK have seen a spike in new cases which has resulted in a second series of lockdowns and US cases have also continued to surge. This is likely to drive a tightening in restrictions. Thankfully improved testing and treatment and better protection for the most vulnerable means that the death rate for developed countries is well down when compared to the peak of the outbreak earlier this year. 

Post election tensions

While Biden has been elected as President the race was much closer than many anticipated, leaving the Democrat program more constrained. That said, the outcome may be good for markets as tax hikes will be off the table and Biden may be a more conciliatory and steadier President, particularly on the trade and foreign policy issues that have bothered markets under Trump’s Presidency.

US/China strains

The stand-off between the US and China will likely continue although it may be less overtly confrontational under a Biden Administration. 

Where to from here?

While it’s clear that the worst of the initial decline in economic growth is now passing, it’s still an uncertain time and markets do not like uncertainty. While seeing the balance of your superannuation balance go up and down can be unnerving, it’s worth remembering that superannuation is generally a longer-term investment and markets have already shown that they do have the ability to recover.

Expert guidance can support you to navigate through this increasingly complex market environment. Speak to a financial adviser if you’d like some support with your financial strategy.

 

Need more information?

  1. Check your super balance by logging onto ANZ Internet Banking and click on super
  2. Find out how to ensure hasty decisions don’t erode your super.
  3. Read our COVID-19 FAQs.

 

Make superannuation simple and straightforward

Smart Choice Super performance

Article

ANZ Smart Choice Super report: June 2020
 

Markets bounced back during April and May as economies started to reopen, delivering positive results for the June 2020 quarter. See the results.

Article

ANZ Smart Choice Super report: March 2020
 

Strong performance over 2019 was challenged during the March 2020 quarter due to COVID-19. See the results.

Article

ANZ Smart Choice Super report: December 2019
 

Strong investment performance continues for the second quarter of the 2019/20 financial year.

“ANZ Smart Choice Super” is a suite of products consisting of ANZ Smart Choice Super and Pension (PDF 189kB)ANZ Smart Choice Super for employers and their employees (PDF 186kb) and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees (PDF 198kb). The ANZ Smart Choice Super and Pension product is distributed by Australia and New Zealand Banking Group Limited (ANZ) (ABN 11 005 357 522). ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees are MySuper compliant products issued pursuant to the latest PDS available at anz.com/smartchoicesuper. ANZ Smart Choice Super is part of the Retirement Portfolio Service (the Fund) (ABN 61 808 189 263) and is issued by OnePath Custodians Pty Limited (ABN 12 008 508 496, AFSL 238346, RSE L0000673) (OPC), the trustee of the Fund. OPC is a member of the IOOF Group of companies, comprising IOOF Holdings Limited ABN 49 100 103 722 and its related bodies corporate. The Australia and New Zealand Banking Group Limited (ANZ) (ABN 11 005 357 522) brand is a trademark of ANZ and is used by OPC under licence from ANZ. ANZ and the IOOF Group of companies (including OPC) are not related bodies corporate. ANZ does not guarantee these products.

Before re-directing your super or moving your money into ANZ Smart Choice Super, you will need to consider whether there are any adverse consequences for you, including loss of benefits (e.g. insurance cover), investment options and performance, functionality, increase in investment risks and where your future employer contributions will be paid. 

This information is of a general nature and has been prepared without taking account of your personal needs, financial situation or objectives. Before acting on this information, you should consider whether the information is appropriate for you having regard to your personal needs, financial circumstances or objectives.

All fees are subject to change. Other key features are relevant when choosing a super fund, including performance.

Fee Analysis: Research conducted by SuperRatings Pty Ltd, holder of Australian Financial Services Licence No. 311880 at the request of OPC. For a copy of the latest SuperRatings research, click here (PDF 452kB) or call 13 12 87.

For more information, visit moneymag.com.au, selectingsuper.com.au and superratings.com.au SuperRatings does not issue, sell, guarantee or underwrite this product. Learn more about SuperRatings' criteria.

Top