January 2019 newsletter

The top performers over the last calendar year were International Shares, Australian shares, Global Listed Infrastructure, Global Listed Property and Australian Listed Property. However, all asset classes produced positive returns with cash bringing up the rear.

This article includes the 20 most popular Australian domestic listed securities invested in by SMSFs as at 30 June 2019.

SMSF investors estimate a +1.4% capital growth expectation for the All Ordinaries Index for the next 12 months, according to the latest Investment Trends’ Investors Intention Index report.

This article includes the 20 most popular international shares invested in by SMSFs as at 30 June 2019.

SMSF trustees are often accused of being unadventurous in their asset allocation, but some are bucking the trend with ‘exotic’ investments in everything from horse semen to vending machines and dividend-paying cows.

Super funds defied all expectations in 2019, recording their best calendar year since 2013. The median growth fund returned 14.7%, capping an eight-year run of positive returns.

Hostplus and AustralianSuper cemented their position in the top two spots with average annual returns over the last 10 years of 9.2% and 9% respectively. The top 10 consists entirely of industry funds, beating all retail and corporate funds.

Despite a partial rebound in April, all lifecycle fund age cohorts have had negative returns for the financial year to date. Younger members with higher exposure to risk assets have borne the brunt of the downturn, while older members with a more defensive asset allocation have been cushioned from the worst of the falls.

A key recommendation in the new Productivity Commission report, the idea of employees being given a ‘best in show’ list for the top 10 performing super funds has been met with a hostile response from the super industry.

An easy way to determine if you believe your super fund is good value, is to assess the cost of your super fund against the average costs for the different types of super funds available.

In the superannuation world there’s always a lot of talk that lower fees equates to more savings over the life of your super.

Superannuation is a long-term investment but that doesn’t mean you can afford to put off thinking about it for a day that never comes.

Life expectancy is a complex topic, so we’ve put together a straightforward guide to help explain the key concepts – enabling you to plan your retirement with a bit more confidence.

SMSFs are increasing their allocation to international shares, with the Australian Taxation Office’s figures showing funds’ allocation to this asset class jumped to $6.18 billion last year, up from $1.8 billion in 2013.

Although it can be difficult getting your head around all the different types of super contributions that go into your super account, concessional contributions are the ones you are mostly likely to have and are pretty straightforward to understand.

You can make contributions into your super account from your take home pay or money outside the super system. Since these contributions have already been taxed before you contribute them to your super account, they are not treated concessionally and are called non-concessional contributions.

Although it sounds complicated, bring-forward contributions are just what they sound like – you bring forward your non-concessional contributions caps from future years and use them in a shorter time period.