This result compares favourably with our peer group of superannuation funds where the average Balanced Fund returned -12.5% (SuperRatings Fund Crediting Rate Survey - SR50 Balanced (60 - 76) Index, June 2009).
Although no-one likes to see a negative return, given the extremely turbulent investment environment of the past 18 months, the result highlights the focus of the Fund to minimize the impact of negative markets but produce competitive returns in strong economic conditions.
The return is mainly due to volatile equity markets which have been a barometer for the well publicised global financial crisis. For the 12 months to June 2009, the Australian Equity market was down 20%, the worst financial year in 28 years. Over the last 2 financial years, the equity market has fallen 34%, the worst performance by the Australian Equity market over two consecutive financial years in the past 73 years. Global equity markets experienced similar declines while property and other asset classes have also seen lower valuations. These events led to balanced super funds delivering negative returns.
In these very difficult times the CareSuper Balanced Option was one of the best performing funds over the past 12 months. The return for 08/09 places the Fund in the top ten balanced funds as surveyed by all major ratings agencies.
CareSuper also maintained its extremely strong relative performance ranking over 3, 5 and 10 years. Over 10 years the Fund is ranked in the 1st quartile in the Mercer and Super Ratings Balanced Fund surveys.
Actual returns over 1, 3, 5 and 10 years are set out below.
|
|
1 year
(%)
|
3 years
(% p.a.)
|
5 years
(% p.a.)
|
10 years
(% p.a.)
|
| Balanced – crediting rate |
-9.5 |
0.0 |
5.6 |
6.9 |
| CPI |
1.5 |
2.7 |
2.9 |
3.2 |
| CPI + 3% p.a. |
4.5 |
5.7 |
5.9 |
6.2 |
| Mercer Median Balanced* |
-12.5 |
-3.5 |
3.4 |
4.1 |
| SuperRatings Balanced* |
-12.5 |
-1.8 |
4.3 |
5.4 |
*Source: SuperRatings Fund Crediting Rate Survey - SR50 Balanced (60 - 76) Index, June 2009, to download click here
CareSuper Balanced option returns -9.5% for the 2008/09 financial year
CareSuper declared the following effective annual after-tax and fees returns for all options.
| Option |
Annual return
(%) |
| |
Superannuation |
Pension |
| Capital Guaranteed |
4.0 |
4.0 |
| Capital Stable |
-2.2 |
-2.4 |
| Conservative Balanced |
-4.3 |
-4.7 |
| Sustainable Balanced |
-10.1 |
-11.4 |
| Balanced |
-9.5 |
-8.3 |
| Alternative Growth |
-7.9 |
-8.8 |
| Growth |
-10.2 |
-11.4 |
| Capital Secure |
3.1 |
3.7 |
| Fixed Interest |
4.4 |
4.9 |
| Direct Property |
-11.8 |
-13.4 |
| Australian Shares |
-14.2 |
-16.1 |
| |
|
|
Disclaimer: CARE Super Pty Ltd and its directors, officers, employees and associates make no representation in respect of, and, to the extent permitted by law, exclude all warranties in relation to the accuracy, currency or completeness of the information provided. CARE Super Pty Ltd and its directors, officers, employees and associates accept no liability whatsoever (including by way of negligence) for any loss or damage, however caused, as a result of any person relying , in whole or in part, on any information provided. All information in the above article is current at the time of production and subject to change. You may wish to obtain professional advice before acting on any of the information contained in this document.
