Investment performance to 30 June 2008
The tables described in the following pages show the performance results for each of the MilitarySuper Member investment choice strategies for 2007–08 financial year, for previous financial years and on rolling five year periods. A detailed explanation of each of the investment options and their investment returns over the last five years can be found at Your investment options.
If you have switched investment strategy, or have a mixed strategy, then your investment return will depend on the combination of investment options you have chosen.
When considering investment decisions, please note that investment returns over a relatively short time frame of one or two years, should generally not be considered in isolation. Longer timeframes of five to ten years will generally provide a more accurate indication of long term performance of an investment strategy.
It is important to remember that the value of investments can go up and down and that past performance should not be relied on as an indicator of future performance.
| Financial Year Ending | High Growth | Growth | Balanced | Conservative | Cash |
|---|---|---|---|---|---|
| 30 June 2008 | -3.9 | -2.6 | -0.5 | 2.7 | 6.0 |
| 30 June 2007 | 16.4 | 16.3 | 13.5 | 9.5 | 5.2 |
| 30 June 2006 | 18.2 | 15.7 | 14.0 | 9.4 | 5.7 |
| 30 June 2005 | 14.1 | 12.0 | 12.5 | 7.8 | 4.3 |
| 30 June 2004 | 18.9 | 15.6 | 14.2 | 8.1 | 4.4 |
| Average 5 Year Return | 12.7 | 11.4 | 10.7 | 7.5 | 5.1 |
| Periods to 30 June 2008 | High Growth | Growth | Balanced | Conservative | Cash |
|---|---|---|---|---|---|
| 1 Year | -3.9 | -2.6 | -0.5 | 2.7 | 6.0 |
| 3 Years | 9.6 | 9.3 | 8.8 | 7.1 | 5.7 |
| 5 Years | 12.3 | 11.1 | 10.6 | 7.5 | 5.1 |
| 10 Years | N/A | 6.7 | N/A | N/A | N/A |
| Since Inception | 12.3 | 7.7 | 10.6 | 7.5 | 5.1 |
| Year of Inception | 2003 | 1991 | 2003 | 2003 | 2003 |
Average returns represent a simple arithmetic average of a series of returns generated over a period of time. Compounded returns represent the cumulative effect that a series of gains or losses have on an original amount of capital over a period of time.
| Asset Class | MilitarySuper(1) | Benchmark(2) |
|---|---|---|
| Cash | 7.0% | 7.3% |
| Property | 4.7% | 12.0% |
| Australian Shares | -10.2% | -13.7% |
| International Shares(3) | -3.9% | -13.7% |
| Private Equity(4) | 5.3% | 15.0% |
| Uncorrelated Alpha | -7.7% | -0.2% |
| Infrastructure | 12.6% | 12.5% |
| Debt Instruments | 3.9% | 4.4% |
| Alternative Debt | -11.4% | -1.1% |
- Figures are gross of tax and management fees.
- The benchmark is the most commonly used index or other market measurement which is used as a yardstick to assess the risk and performance of a portfolio. The benchmark usually represents the minimum performance objective. Absolute return benchmarks are established by the Board in the absence of any commonly accepted benchmarks.
- All of the international share exposures were fully hedged, as are the alternative assets.
- Private equity is a long term investment and does not generally show a return in the early years of the investment because of initial set up and management costs. The investment gains usually come in later years as the underlying portfolio of companies mature and increase in value. This timing is known as the J-curve effect.