How Various Superannuation Investment Options Performed

Are you?	- A member of a superannuation fund?
At a glance:	- The Australian Securities and Investments Commission (ASIC), has published the average return for various superfund investment options for the year ended June 30, 2006.
You should:	- Consider whether you are satisfied with your super fund's investment strategy. - Contact us if you require any clarification or advice.

1. The figures published by the ASIC are a compilation of information provided by various Australian super-rating agencies that survey investment performance across retail, industry and corporate funds.
   
   
2. The results are based on several assumptions including that:
   a. 'Growth' options invest between 70-80% in shares or property;
   b. 'Balanced' options invest 60-70% in shares or property with the remainder in fixed interest or cash;
   c. 'Capital stable' invest 60-70% in fixed interest and cash with some investing in shares or property; and
   d. 'Capital guaranteed' are mandated by law to invest 100% within Australian deposit taking institutions or capital guaranteed life insurance policies.
   
   
3. The results are as follows:
   
   

   	Growth	Balanced	Capital Stable	Capital Guaranteed
   5 years	5.7-7.5%	5.1-7.4%	4.8-5.9%	3.7-4.3%
   10 years	7.6-9.4%	6.8-9.3%	5.7-7.3%	4.2-5.9%

   
   
4. According to the ASIC investing $50,000 in superannuation ten years ago at the lowest average growth rate of 7.6% would accumulate to $104,000 today.
   
   
5. This compares favourably with having invested the same sum during the same time at the highest average capital guaranteed rate of 5.9%, which would only amount to $89,000 today.
   
   
6. The performance of self-managed superannuation funds and defined benefit funds are not included in these results.
   
   
7. The figures are available for viewing on ASIC's FIDO website at www.asic.gov.au/fido.
   

Remember:

- Different superannuaiton investment strategies may yield different outcomes over time.