Super Fund Market Update 30 June 2017 - BUSSQ

Super Fund Market Update 30 June 2017

Another good year for investors.

The 16/17 financial year turned out to be another terrific year for investors driven by strong returns from both the Australian (14.1%) and Global (14.1%) stock markets.

Surprisingly, markets rallied strongly following the election of Donald Trump as US President. Other markets such as commercial real estate, infrastructure and agriculture were also strong; however government bond returns were weak as the US Federal Government started the cycle of increasing interest rates.

As a result of strong market conditions, the BUSSQ Super Balanced Growth investment option returned 9.76% for the financial year. All investment options other than cash and fixed interest also delivered strong returns as shown in the table below.

Financial markets now look quite fully priced and BUSSQ is taking a cautious approach going forward. We are actively taking profits and finding it difficult to uncover attractive new investments. At this stage in the cycle, members should avoid taking too much risk.

BUSSQ Investment Returns For the period ending 30 June 2017

 

1 year 3years  5 years†  7 years†  10 years† 
BUSSQ Balanced Growth  9.76% 8.85% 11.03% 
9.29% 5.54%
Defensive  5.85% 5.95% 7.04% 6.75% 4.92%
High Growth  11.16%  9.73%   12.56%   10.51%  5.94% 
Cash  1.75% 1.95%  2.30%  3.01% 3.24%
Australian Shares 13.15%  8.65%   12.86% 10.18% 8.21%
International Shares 16.47%  12.68%  16.60% 13.27% 6.12%
Diversified Fixed Interest  2.17% 2.64% 3.15% 4.31% 5.22%
All Shares~  14.99%  10.84% 
14.69% 
n/a  n/a 
Australian Larger Company Shares~  13.13%  8.13%   12.58%  n/a  n/a 
Australian Smaller Company Shares~  12.55%  9.94%  12.34% n/a  n/a 
Emerging Market Shares~  15.67%  7.04%  10.06% n/a  n/a 

†  3, 5, 7 and 10-year figures are compound annual returns for the period preceding 30 June 2017.
~ These investment options commenced 1 March 2011, so no 7 or 10-year figures are available.