Skip to main content
#
A Clear Direction
rss feedour twitterour facebook page linkdin
home
Financial Advisor Brisbane - AdviserScott Keefer - A Clear DirectionBuilding Investment PortfoliosPortfolio Management ServiceUpdated ContentContact Us - Brisbane Financial Planning
A Clear Direction Financial Planning logo

 Financial Happenings Blog 
Tuesday, September 26 2006

The headline in the Courier Mail today read 'Super Run for Funds in August'.

The article then went on to espouse the great returns for super funds including:

  • Australian share funds an average return of 17.9% for the year to 31st August 2006
  • International share funds an average return of 13.1% for the year to 31st August 2006
  • Listed property trust funds an average return of 15.8% for the year to 31st of August 2006

What great results for investors!  Or are they?

Have a look at these figures relating to the overall performance of the market during these times.

  • The ASX300 share fund had a return of 19.59% for the year to 31st August 2006
  • International share index had a return of 14.5% (50% hedged) for the year to 31st August 2006
  • Listed property trust funds index (ASX300) had a return of 20.94% for the year to 31st of August 2006
  • In each case the average super fund SIGNIFICANTLY underperformed the simple index return.

    These results even surprised me.  Over a 1 year period I would have expected that funds got closer to the index than that.  What the results clearly show is just how tough it is to beat the market over a short time period - and over longer time periods the index will win by more and more.  It also shows that we should not be complacent even when investment returns are booming.  While the absolute returns of the super funds are fine, underperforming the index by a margin is not acceptable, because the option is always there for investors to use an index fund.

    The performance data for the superannuation funds was taken from the superratings website.

    Posted by: Scott Francis AT 08:25 pm   |  Permalink   |  Email
     
    Scott Francis' articles in the Eureka Report 
    Request for Information 
    If you have questions, or would like more information, please go to our Contact page and leave your name and contact information.

    Plan Well, Invest Well, Live Well! Financial advice providing a clear direction

    A Clear Direction Financial Planning and Portfolio Management ABN 85 147 572 870

    Level 19
    10 Eagle Street
    Brisbane QLD Australia
    Ph: (07) 3303 0269
    Email: scottk@acleardirection.com.au

    Authorised Representative (398444) and Credit Representative (403292) of FYG Planners Pty Ltd AFSL/ACL 224 543.

    ASIC - Financial Advisers Register

    All content of this website is copyright © A Clear Direction Financial Planning Pty Ltd, 2017

    FYG Planners Pty Ltd & A Clear Direction Financial Planning Privacy Policy