Performance of managed super funds and the Lindfield Superannuation Fund

Posted On: Wednesday, December 14th, 2016  In: Blog

In the last few weeks we have held discussions with a number of clients about the performance of their managed superannuation funds. Their super funds have reported negative or very small returns for the 2015/16 year and the returns are below bank interest rates whereas the year before the returns were much higher.

We have then explained the fundamentals of these funds. Some larger proportion of these funds are invested in the share market.

The alternative investments of bank deposits and property form a smaller portion of these funds. These funds are measured on their performance on a strict anniversary date of 30th June.

From 1 July 2015 to 30 June 2016 the share market has performed very poorly. Here is the value of the ASX all ordinaries index at various dates.

 

S&P/ASX All Ordinaries values

S&P/ASX All Ordinaries values over time

chart

 

Most of our clients have had similar performance in their SMSFs as did the two Lindfield Funds that we advise on, mentioned in the next section.

What one needs to remember is that managed funds include a sizeable proportion in the share market. The market is subject to cycles both over the long term and within a year and are subject to reporting on a fixed date. 2015/16 was a down year.

Lindfield Superannuation Fund

If you’re looking for an alternative superannuation fund to the large retail and industry funds and don’t want to manage your own SMSF, the team at Peter Vickers Investment Services (PVIS) are able to offer you the following products;

The Lindfield Superannuation Fund for the accumulation phase of your life and The Lindfield Pension Fund. The original Lindfield Fund started in 1989 and a pension option was added later as our members reached pension age. The Funds are unique in offering a personalised service, possible because we’re a smaller firm, with expertise and knowledge gained from over 3 decades of superannuation management and advice.

The Fund’s investment decisions are made by Peter Vickers.  Beta funds are termed Growth Funds as they focus primarily on share investments.  That is, 50% are invested in Domestic Shares, 10% International Shares, 10% in Property Trusts, 25% Fixed Interest and 5% held in cash. The unaudited performance of the fund over the last financial year was consistent with the market for last year with  Accumulation Fund down at – 0.80%, whilst the Pension Fund  was 0.40%. If we look at the September quarter this year, Accumulation gained 2.98%, Pension gained 2.22% and last financial year (2015) The Lindfield Superannuation Fund achieved 7.91% growth.

Our stocks are selected based on long-term investment returns and hence it is important to remember that present performance is not an indication of future performance.

To members who require insurance, the Lindfield Superannuation Fund also offers life, TPD and income protection through insurer AIA. One member was fortunate to get the right advice from our office to apply for insurance through the super fund and last year made a successful claim due to injury.

If you would like to further details about the fund or have any questions, please don’t hesitate to call Heather Leung.

 

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