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ANZ Smart Choice Super report: September 2017

Published November 2017

Global markets rallied in September 2017 quarter, boosting ANZ Smart Choice Super returns, explains Mark Rider..

ANZ Smart Choice Super investments continued to perform well in the September quarter. The main contributor was global shares as they continued to rally on solid global growth outlook. Australian shares were also positive, which meant those in the ANZ Smart Choice Super lifestage options with more growth assets benefited the most from continued sharemarket strength. Bond markets were mixed as positive returns from global fixed interest were somewhat offset by Australian fixed interest. 

Overall, all ANZ Smart Choice Super lifestage options produced positive results, with returns ranging from 0.66 per cent for the 1940s option to 1.97 per cent for the 1990s option.

As you know, most ANZ Smart Choice Super members are invested in options according to their decade of birth. In the '3 months' column in the table below you can see the growth in each option for the latest quarter of 2017. Click on the relevant decade for a more detailed look at your super option performance.

Global shares rally

Global markets continued to focus on the improving global economic outlook and rising company earnings. The combination of solid growth outlook and benign inflation further spurred the US Federal Reserve to gradually remove some of the monetary stimulus that has supported markets over recent years.

US shares continued to perform strongly this quarter as consumer confidence remained buoyant and business investment intentions rose. Renewed talk of tax reform from Washington and potential fiscal stimulus added to the optimism. A weaker US dollar also helped improve emerging market shares to deliver strong returns this quarter.

In Europe, growth has continued to improve, providing the European Central Bank room to taper the pace of quantitative easing purchases. In Japan, shares had a strong quarter as improved global growth helped lift exports and on expectations that President Abe would be re-elected.

Positive Australian market

The Australian sharemarket was positive in the quarter, but lagged somewhat relative to its global counterparts. The Reserve Bank of Australia remained on hold and acknowledged that the economy has steadily improved.

Bond yields were little changed over the quarter, reflecting a largely stable global economic backdrop with continued subdued inflation and wages growth. In general, corporate bonds outperformed government bonds. 

ANZ Smart Choice lifestage options’ performance (%)

Option
(decade of birth)

3 mths

6 mths

1 yr

2 yrs (pa)

3 yrs (pa)

4 yrs (pa)

5 yrs (pa)

1940s

0.66

1.54

2.72

3.67

3.90

4.23

4.48

1950s

0.81

1.77

4.33

5.38

5.37

5.84

6.65

1960s

1.34

2.48

6.66

7.17

6.59

7.01

8.27

1970s

1.73

2.98

8.47

8.55

7.49

7.79

9.26

1980s

1.91

3.24

9.41

9.12

7.99

8.24

9.81

1990s

1.97

3.31

9.62

9.30

8.06

8.31

9.92

2000s

1.92

3.24


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 September 30, 2017. pa = per annum. Past performance is not a reliable indicator of future performance. The 2000s lifestage option’s inception was on 18th February 2017 and therefore only the 3 and 6 months performance data are available.

As can be seen in the table above:

  • the 1940s option returned 0.66 per cent for the September quarter
  • those with the most growth assets, the 1980s, 1990s and the 2000s options were the best performers with 1.91 per cent, 1.97 per cent and 1.92 per cent respectively
  • the 1970s option, with investments roughly split 80 per cent (growth assets) to 20 per cent (defensive assets), returned 1.73 per cent.

When comparing results, it’s recommended to consider returns over the long term. There will always be short-term variations in the market, but they’re not a reliable indicator of overall fund performance.

Choose your own investment mix performance

Those ANZ Smart Choice members that opted to choose their own investments can see results for different classes of assets below. In the past quarter we can see that apart from Australian fixed interest, all others generated positive returns. 
 

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

Option

3 mths

6 mths

1 yr

2 yrs (pa)

3 yrs (pa)

4 yrs (pa)

5 yrs (pa)

Cash

0.34

0.68

1.40

1.60

1.77

1.91

2.07

Conservative

0.51

1.30

2.32

3.47

3.63

3.89

3.96

Moderate

0.93

1.93

4.62

5.66

5.58

5.96

6.60

Growth

1.53

2.77

7.54

7.90

7.06

7.36

8.60

Australian equities

0.97

-0.30

8.71

10.55

6.95

6.74

9.55

International equities (hedged)

3.81

6.79

17.15

13.90

9.32

10.94

12.90

International equities (unhedged)

2.37

5.62

13.63

7.51

Global property

0.76

2.35

0.26

7.31

8.50

9.01

10.04

Global fixed interest

0.45

1.40

-0.22

3.19

3.68

4.34

3.88

Australian fixed interest

-0.23

0.54

Global Smaller Companies*

3.59

6.85

14.90

9.24


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 September 30, 2017. pa = per annum. Past performance is not a reliable indicator of option performance. Note the Australian Fixed Interest fund’s inception was on 18th February 2017 and therefore only the 3 and 6 months performance data are available. The International Equities (unhedged) option and the Global Smaller Companies option inception was on 25th May 2015 and therefore the 3 year performance data is not yet available.
*The Global Small Companies investment option is not available to members of ANZ Smart Choice Super and Pension.

Members of ANZ Smart Choice Super for employers and their employees can access the latest returns across the full suite of investment choices (PDF 111kB)  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. Refer below for important information.)

See your super balance online

  • Members across the ANZ Smart Choice Super suite of products can see their individual super balance via ANZ Internet Banking.
  • Simply log on to ANZ Internet Banking and select your ANZ Smart choice Super account.
  • If you need help getting online, call Customer Service on 13 12 87 (Monday-Friday 8.30am-6.30pm AEST)

 



Mark Rider
Mark Rider is ANZ Wealth’s chief investment officer, responsible for delivering an overarching investment strategy, including asset allocation, investment themes, investment manager and product selection and monitoring for ANZ Wealth in Australia. Before joining ANZ in 2013, Mark spent 15 years at UBS and 10 years at the Reserve Bank of Australia, making him a well-recognised and respected member of the Australian investment community.

 

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1. The above investment returns relate to super accounts only with the exception of members in ANZ Smart Choice Super – for QBE Management Services Pty Ltd and their Employees. To access the latest returns, please visit your ‘Investment portfolio’ page via ANZ Internet Banking

2. For ANZ Smart Choice Pension returns, click on the above options to access the detailed Investment Option Summaries containing returns specific to ANZ Smart Choice Pension, or visit your ‘Investment portfolio’ page on ANZ Internet Banking.

3. Please note that past performance is not a reliable indicator of future performance.

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.

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