Guard Your Savings
Money Magazine Australia|December 2017/January 2018

THE BIG QUESTIONS FOR 2018

Kirby Rappell
Guard Your Savings

WHAT CAN AUSSIES EXPECT FROM THEIR SUPER FUNDS NEXT YEAR IN TERMS OF VOLATILITY AND RETURNS?

Over the year to June 30, 2017 strong returns boosted the balances of many super annuation accounts. However, a more challenging investment environment characterised by subdued returns and increased volatility is expected to impact super returns over the next year.

The average balanced fund (funds with an allocation to growth assets ranging from 60% to 76%) achieved a return of 10.4% in 2017. The trend towards overseas shares was a key contributor to returns due to buoyant international equity markets. The top performers also tended to have higher exposures to unlisted assets such as direct property and infrastructure. The top-performing balanced fund for 2017 was Hostplus Balanced, delivering 13.2%.

Over the next 12 months the main factors that will shape the performance and volatility of investment markets are global and domestic economic conditions and political uncertainty. The current low-interest-rate environment is not sustainable, with further yet gradual increases in the US Federal Reserve’s interest rate on the horizon. Improved economic growth and employment levels paint a positive outlook for Australia, with interest rate hikes expected once the Australian dollar stabilises.

Rising interest rates tend to have a dampening effect on stock prices, and therefore superannuation returns, as the costs of borrowing hit the bottom line of businesses and discretionary spending by consumers. Asset values that have risen on the back of cheap credit also pose a risk to both domestic and international markets if a pricing correction occurs.

هذه القصة مأخوذة من طبعة December 2017/January 2018 من Money Magazine Australia.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة December 2017/January 2018 من Money Magazine Australia.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من MONEY MAGAZINE AUSTRALIA مشاهدة الكل
An outrageous, beautiful monopoly
Money Magazine Australia

An outrageous, beautiful monopoly

Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.

time-read
4 mins  |
July 2024
Drop the anchor to judge value
Money Magazine Australia

Drop the anchor to judge value

Buying and selling decisions should be based on where a stock price is going, not where it has been.

time-read
3 mins  |
July 2024
Powering the AI boom
Money Magazine Australia

Powering the AI boom

Beyond the software and chipmakers, where will the energy come from?

time-read
3 mins  |
July 2024
Get into life
Money Magazine Australia

Get into life

Tucked inside super are products that can protect you from life's inevitable uncertainties.

time-read
5 mins  |
July 2024
Paths to home ownership
Money Magazine Australia

Paths to home ownership

Taking the road less travelled can sometimes deliver unexpected benefits.

time-read
5 mins  |
July 2024
Sold! Quick ways to add value
Money Magazine Australia

Sold! Quick ways to add value

Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.

time-read
5 mins  |
July 2024
Money lessons the kids need to know
Money Magazine Australia

Money lessons the kids need to know

Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.

time-read
4 mins  |
July 2024
Property-investing rules: are they likely to change?
Money Magazine Australia

Property-investing rules: are they likely to change?

The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.

time-read
3 mins  |
July 2024
What's love got to do with it?
Money Magazine Australia

What's love got to do with it?

A rollercoaster of emotions could be driving poor crypto behaviour.

time-read
3 mins  |
July 2024
Are we ready to be cash-free?
Money Magazine Australia

Are we ready to be cash-free?

Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.

time-read
2 mins  |
July 2024