Investment returns for all AustralianSuper’s investment options for the period ended 31 December 2011 are now available.
Over the ten years to 31 December 2011 the Balanced option had an average annual return of 5.7%, outperforming the median balanced fund return of 4.7%pa*. Returns remain strong over the longer term, with the Balanced option returning an average of 9.3% per annum since its inception in August 1985.
Shares make up just over half the Balanced option’s portfolio, so its short-term returns have been impacted by volatility in both Australian and international share markets, reflecting the deepening of the European Debt Crisis over the past 12 months. In the 12 months to 31 December 2011 the Balanced option returned -1.37%, compared to the return of the median balanced fund of -1.87%*.
Our investments in property, infrastructure and fixed interest provided strong and stable returns during the period, which helped to reduce the impact of share market volatility.
What should I be doing with my super?
Short-term share market volatility and short-term returns can be very distracting and concerning for long-term investors - such as many superannuation members.
Returns over a single year provide a reminder of the importance of long-term diversification. For example, our investments in property, infrastructure and fixed interest have contributed consistent returns to the portfolio during volatile times. At the same time, shares have produced higher returns over the longer term and remain an important part of our investment strategy.
It is also important to remember your timeframe and your long-term goals when choosing or reviewing your super investment strategy. If you want your super to have the chance to grow over a long period, you need to remain invested in an option that includes some investments with the potential to grow, and to significantly out-pace inflation.
* SR50 Balanced Index, SuperRatings Crediting Rate Survey, December 2011
For more information
View investment returns for all of AustralianSuper’s options as at 31 December 2011.
For more information on the current economic situation
See our latest e-investment bulletin, The European saga and your super’
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If you need help
If you have questions about the investment of your super, call us on 1300 300 273 and ask to speak to an adviser from the Financial Education and Advice Team – they can provide over-the-phone financial advice at no cost.