Super funds in the black for the sixth straight year

Despite the sharemarket turmoil in June resulting from Greece’s debt crisis, super funds finished the 2014/15 financial year well in the black with the median growth fund returning 9.8% – the sixth straight positive annual return.  The top-performing fund for the year was QSuper which returned 12.3%.  Even the worst-performing fund in the growth category gained 6.2%.

Please see the attached media release for further information.  Key highlights include:

This year’s return of 9.8% is comfortably ahead of the typical longer-term return objective for the growth category, which is about 6% to 7%.  The result comes on the back of returns of 15.6% in 2012/13 and 12.8% in 2013/14, making an average of 12.7% per annum over the past three years.
Since the GFC low point at the end of February 2009, growth funds have now delivered an impressive 88%, putting them 37% above their pre-GFC high of October 2007.
All asset sectors delivered positive returns for the 2014/15 financial year, but some were much stronger than others.  The better performing funds were generally those that maintained a relatively high exposure to foreign currency (because of the decline in value of the Australian dollar), Australian listed property and private equity, and a lower exposure to Australian shares, the broader bond market, hedge funds and cash.
Industry funds outperformed retail funds over the year, returning 10.2% versus 9.6%.

Source: Chant West

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Budget’s CGT changes will shift adviser approach to client portfolios

Budget’s CGT changes will shift adviser approach to client portfolios

The government has confirmed highly anticipated changes to CGT and negative gearing concessions in Tuesday night’s budget. Advisers are already pondering how this will impact the investment strategies for their clients.

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