Investment Performance 2006-07
The charts and tables below show the performance results for each of the MilitarySuper Member investment choice strategies for the 2006-07 financial year, for previous financial years and on rolling five (where applicable) and three-year periods. MilitarySuper offers you five investment strategies in which to invest your Member Benefit.
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 seven 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.
Annual Returns since 1 July 2004
| 2004-05 | 4.3% | 7.8% | 12.5% | 12% | 14.1% |
| 2005-06 | 5.7% | 9.4% | 14% | 15.7% | 18.2% |
| 2006-07 | 5.2% | 9.5% | 13.5% | 16.3% | 16.4% |
Annual and Average Returns Over Rolling Five Year Periods for the Growth Strategy
| Annual Net Returns | Average Compound Annual Rate of Return | |
|---|---|---|
| 2002-03 | -2.0% | 2.4% |
| 2003-04 | 15.6% | 3.8% |
| 2004-05 | 12.0% | 3.5% |
| 2005-06 | 15.7% | 5.9% |
| 2006-07 | 16.37% | 11.3% |
Annual and Average Compounded Annual Rate of Return
| Average compound annual rate of return* | 4.9% | 8.7% | 13.5% | 14.9% | 16.9% |
| Annual net return | 5.2% | 9.5% | 13.5% | 16.3% | 16.4% |
* As the investment options, other than Growth began in 2003-04, the Average Compound Returns are based on 4 year returns in this table.
Performance by Asset Class
| Cash | Property | Australian Shares | International Shares 3 | Private Equity 4 | Uncorrelated Alpha | Infrastructure | Debt Instruments | |
|---|---|---|---|---|---|---|---|---|
| MilitarySuper 1 | 6.2% | 5.1% | 28.4% | 23.1% | 15.4% | 4.0% | 8.1% | 7.3% |
| Benchmark 2 | 6.4% | 10.0% | 29.2% | 23.7% | 15.0% | 10.0% | 10.0% | 6.4% |
1.Figures shown are gross of management fees and tax.
2.The benchmark return for an asset class represents the minimum performance objective, assuming that all dividends and interest payments are reinvested in the market.
3. Private Equity is a long-term investment and does not generally show a return in the early years of the investment because of set-up and management costs. The investment gains usually come in the later years as the underlying companies mature and increase in value. The effect of this timing is known as the J-curve Effect.
4.All international share exposures are fully hedged back to the Australian dollar.