Why do the Industry funds, e.g. Australian Super, appear to have such good returns? Its Australian shares fund is returning 19.85% financial year to date. Its balanced fund returns 13.72%. My Australian shares are returning nowhere near that and it appears Paul Rickard’s Model Portfolio is not close to a 19.85% return either. Unless I am reading it wrong.
Thanks for the question.
Firstly, it is ‘financial year’, which runs from 1 July 2013.
According to the data I can see, for the financial year to date period from 1 July to 9 March:
- Australian Super Balanced (Pension): 13.71%
- Australian Super Australian Shares (Pension): 20.35%
- S&P/ASX 200 Accumulation Index Change (28/6/13 to 9/3/14): 17.67%
So, Australian Super Australian Shares is performing strongly – outperforming the benchmark accumulation index by around 2.7%. The balanced fund, given that it has other assets, such as cash and fixed interest securities, is also doing quite well. On that score, you are correct about Australian Super.
In regard to our model portfolios, our income portfolio was worth $108,343 on 28/6/13, closed 2013 at $124,361 (gain of 14.78%). When rebalanced on 1 Jan, it is up another 1.73% to 28 February. Our growth portfolio was worth $108,360 on 28/6/13, closed the calendar year at $127,553 (gain of 17.71%). When rebalanced on 1 Jan, it is up another 0.83% to 28 February.
We offer these portfolios as examples of the processes you might apply to construct a portfolio, and hence, we don’t track daily “performance”.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
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- Penny Pryor – Art for money’s sake [1]
- Charlie Aitken – JB Hi-Fi best discretionary retail pick [2]
- James Dunn – The value to be found in mining services [3]
- Staff Reporter – Buy, Sell, Hold – what the brokers say [4]
- Ron Bewley – Know your objectives when building a portfolio [5]
- Tony Negline – How to fix a problem in your SMSF [6]