Investment performance to 30 June 2010
The tables described below show the performance results for each of MilitarySuper’s investment options for the 2009-10 financial year, for previous financial years and for rolling five year periods. A detailed explanation of each of the investment options can be found at Your Investment Options.
If you have switched investment options during the year or have a mixed strategy, then your investment return will depend on the combination of investment options you have chosen and the timing of any switches.
It is important to remember that for most members superannuation is a long term investment and a superannuation fund’s investment performance will fluctuate from year to year.
The Board’s investment strategy, however, remains based on economic activity driving long term wealth creation. As such, over the longer term your retirement savings will grow, but there will be periods along the way where occasional negative returns are experienced. This is a natural and recognised feature of investment markets.
You should be aware that past performance is not a reliable predictor of future performance, but long term historical data can be useful in assessing the relevance of current year returns to your long term retirement saving goals.
| Financial Year Ending | High Growth | Growth | Balanced | Conservative | Cash |
|---|---|---|---|---|---|
| 30 June 2010 | |||||
| 30 June 2009 | -20.0 | -13.0 | -10.3 | -5.3 | 4.3 |
| 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 | 5.0 | 5.7 | 5.8 | 4.8 | 5.1 |
* 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.
Average Returns (Compounded Average Annual Returns)*
| Option | 1 year |
3 years |
5 years |
7 years |
10 years |
Since inception |
|---|---|---|---|---|---|---|
| Cash | 3.5% | 4.6% (4.6%) | 5.0% (4.9%) | 4.8% (4.8%) | N/A | 4.8% (4.8%) |
| Conservative | 0.4% | –0.7% (–0.3%) | 3.4% (3.5%) | 4.7% (4.8%) | N/A | 4.7% (4.8%) |
| Balanced | 0.9% | –3.3% (–3.0%) | 3.5% (3.4%) | 6.3% (6.1%) | N/A | 6.3% (6.1%) |
| Growth | 2.2% | –4.5% (–4.2%) | 3.7% (3.3%) | 6.6% (6.2%) | 3.8% (3.4%) | 5.9% (5.8%) |
| High Growth | –1.6% | –8.5% (–8.2%) | 1.8% (1.2%) | 6.0% (5.4%) | N/A | 6.0% (5.4%) |
* Average returns represent a simple arithmetic average of a series of returns generated over a period of time. Compound annual return represents the cumulative effect that a series of gains or losses have on an original amount of capital over a period of time.
Past performance is not a reliable predictor of future performance, but long–term historical data can be useful in assessing the relevance of current–year returns to your long–term retirement savings goals.
| Periods to 30 June 2010 | High Growth | Growth | Balanced | Conservative | Cash |
|---|---|---|---|---|---|
| 1 Year | |||||
| 3 Years | |||||
| 5 Years | |||||
| 10 Years | |||||
| Since Inception | |||||
| 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 | MilitarySuper1 | Benchmark2 |
|---|---|---|
| Cash | ||
| Debt5 | ||
| Alternative Debt5 | ||
| Property | ||
| Australian Shares | ||
| International Shares3 | ||
| Private Equity4 | ||
| Uncorrelated Alpha | ||
| Infrastructure |
- 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.
- Debt and Debt Instruments make up the ‘Debt Instruments’ classification described in the Fund’s financial statements.