Article

Two minutes with Mal

posted on 27.02.2017

In this video REI Super CEO Mal Smith provides an update on REI Super’s investments and talks about the investment impact of the Trump election. 

Hi. I’m Mal Smith, Chief Executive of REI Super, with a brief investment update.

For REI Super the quarter ended 31 December 2016 was again a positive one.

I’m very pleased to advise that the net investment return for our Balanced option in the calendar year was 7.69%, our average annual return over three years was 7.89%, and over five years it was 10.32%. These are excellent long-term returns for REI Super members and exceed the returns of the median super fund balanced option.

As we’re well aware, the last quarter of the year saw the election of Donald Trump as President of the United States. The short-term effect this had on investment markets was surprisingly positive. Many markets enjoyed very good returns during the quarter, and Australian shares in particular did very well. This ‘sugar hit’ was perhaps surprising given the election result was achieved not without some controversy.

President Trump talked about supporting American companies and about making America great again and US markets responded positively to this narrative.

But it’s important to be mindful that this is a market response and a good example of short-term “noise” that sometimes distracts from what’s actually going on in companies’ profitability longer term.

Having said that, there is some data emerging that the US economy is still strengthening and there are some grounds for optimism about US shares.

At REI Super of course, we’re less focused on short-term asset price variations and more focused on the longer term fundamental characteristics of different assets which make them good propositions to deliver healthy long-term returns.

Such a disciplined investment approach is the best way to generate long-term returns for our members, and to date it has certainly delivered excellent results.

REI Super Balanced option net investment returns to 31 December 2016

 

 

12 months

3 years (average annual % pa)

5 years (average annual % pa)

REI Super Balanced option

7.69

7.89

10.32

Median balanced option*

7.27

6.90

9.84

* SuperRatings Fund Crediting Rate Survey – SR50 (60-76) Index, December 2016

Please note:

The information contained in this article does not constitute financial product advice.

However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular needs.

Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation. Members should obtain and read the Product Disclosure Statement for REI Super before making any decisions.

Future investment performance can vary from past performance, and you should not base your decision to invest in REI Super simply on past performance. Past earning rates are not an indicator of future earning rates. The investment returns of REI Super are not guaranteed, and the value of the investment may rise or fall.

REI Superannuation Fund Pty Ltd ABN 68 056 044 770 AFSL 240569. RSE L 0000314 REI Super ABN 76 641 658 449 RSE R1000412 MySuper unique identifier 76641658449129 February 2017

 

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