The question no-one wants to ask is – Why are APRA collecting, interpreting and then publishing information in the public domain? The answer is simple – They shouldn’t be!

Instead of regulating, APRA are now trying to play the shame game through their just released heatmaps. But there is a real risk that some of those shamed will be the wrong funds. As the founder of SuperRatings, Jeff Bresnahan says, “The problem is that no one in the industry wants to tell the regulator that they have got it wrong.”

Effectively, APRA is putting into circulation data which analyses just parts of a super fund, not the whole. By ignoring things like Governance, Advice, Insurance and Member servicing structures, consumers are not being provided with the whole picture.

As Bresnahan says, “While conflicts of interest were identified as a major issue in superannuation during the Royal Commission, it seems ironic that APRA has deliberately avoided reporting any measurement of a Fund’s Governance structure”.

In an industry which carries inherently conflicted Directors, it would appear that Governance is ignored in favour of more easily assessable information. Whether such omissions create any legal liabilities for APRA in the future remains debatable.

As a result, APRA continues its foray into unchartered territory. This is not the first time APRA have got it wrong. They have been producing performance tables for over a decade. Unfortunately, the performance tables were flawed from a usefulness perspective, in that they don’t reflect the performance of a super fund’s investment options. However, they continue to produce them and in doing so confuse and possibly mislead Australians.

And so it continues with the heatmaps. Having reviewed the heatmap methodology, SuperRatings is of the opinion that their release into the public domain may create more questions than they answer and that consumers could well be influenced into products that are inappropriate for them.

Aside from the bigger question of why APRA is publishing such data, there remain a number of problems with the methodology adopted. Critically, APRA appears to ignore implicit asset fees when measuring net investment performance.  As Bresnahan says, “This methodology can easily overstate the net benefit a member receives. Similarly, a low-cost investment option with high administration fees creates the very real possibility of consumers investing monies in cheap investment options that have no chance of outperforming the relevant index over any time period, whilst getting slugged high administration fees.”

Investment analysis since the onset of the Superannuation Guarantee in 1992 has shown that all implicit fees and performance must be analysed together on an actual net of fees basis. Many leading funds, in terms of balanced option performance, have had higher allocations than the average fund to traditionally more expensive asset classes such as infrastructure, private equity and unlisted property. These asset classes have continually outperformed cheaper alternatives.

It’s only when all actual fees and returns are combined that the range of results is clearly evident in dollar terms, as the following graph indicates. The graph shows the disparity of net earnings on a $50,000 starting balance (and $50,000 salary) with SGC contributions mapped over both the last 3 and 10 years. Notably, many of the funds that added the most value, over both the short and long term, invested into the more expensive asset classes. Driving people into low-cost options will come at the expense of future earnings, something that taxpayers will ultimately have to bear.

Net benefit trend analysis (over 3 and 10 years)

Source: SuperRatings

And the anomalies continue. The heatmaps are judging funds on short term performance over just 3 and 5 years. Whilst it will be claimed this is necessary due to the limited performance history of MySuper products, it should be noted that most funds have been around for over 25 years and that their default option provides an accurate MySuper proxy.

As Bresnahan said, “Given super is a key plank of Australia’s economic future, it seems counter-intuitive for the Government’s regulator to not measure funds over a more realistic period. Certainly, it is commonly accepted that 7, 10 and 15 year performance analysis is best practice given the long term (60 years plus) nature of superannuation membership.”

Again, a consumer moving funds due to seeing a 3-year performance gap, mid-way through an economic cycle, will no doubt be moving for the wrong reasons.

The way forward

Bresnahan says, “Australians are not stupid, but they remain frustratingly unengaged with their superannuation.” This problem remains the real challenge for much of the industry. APRA’s endeavours are admirable, but questionable at the same time. He goes on to say, “A regulator should set the structure under which funds need to operate. The morphing of this regulatory process into public comparisons leaves it open to being seen as stepping across the line. One wonders what they are actually trying to achieve by moving into this public domain.”

If APRA must continue down this path, then SuperRatings suggests that they need to concentrate on the whole picture, rather than isolated parts therein. This should, aside from earlier mentioned issues, also include:

  1. Regulations to enable consistent fee disclosures, including the inequitable use of tax deductions and transparency to members;
  2. The disclosure of risk within portfolios, both via the assumptions within their growth/defensive disclosures and accepted risk measures;
  3. Compulsory disclosure of major asset holdings;
  4. Moving members into go-forward products and removing legacy structures;
  5. Continued rationalisation of member accounts; and
  6. Increased focus on the decumulation phase and the optimisation of the alignment with retiree objectives.

Identifying poorly run funds is not difficult and APRA would be well aware of them. A series of simple measures such as the non-public fee analysis shown below, when combined with other key assessments, quickly shows those funds who have spent the past few decades masking conflicts of interest at the expense of members.

When it costs a fund over $1,200 to run every account (versus a median of $300) or a fund’s operating expenses as a percentage of assets are over two and a half times the median, then those funds bear further scrutiny. Similar work can be done across Investments, Governance, Administration and Insurance, to name a few. By putting together the whole picture, the poor funds are very quickly exposed.

Operating expenses versus size and members

Source: SuperRatings

But it’s not all gloom and doom for the process. Importantly, after 14 years of industry debate, APRA has finally made a call on what constitutes a growth asset and what constitutes a defensive asset. The growth/defensive debate remains loud within the industry but with APRA’s call of Australian Unlisted Property and Australian Unlisted Infrastructure being 25% defensive, at least there is a starting point. SuperRatings suspect this will not however be the final position.

Certainly, APRA’s front foot involvement with data will give cause for reflection for all super funds, as the funds review their results and assess whether it has any implications for their future.

SuperRatings continues to watch the evolution of the market and continues to monitor funds on their effectiveness in responding to key challenges. We look forward to seeing whether the heatmaps evolve over time and remain broadly supportive of APRA’s underlying intentions. However, we underline that this remains only part of the picture and that the risk of making providers look alike is real. In an environment where innovation is needed, regulatory settings to support innovation are vital to ensure a vibrant industry that thrives into the future resulting in better outcomes for members.

Release ends

We welcome media enquiries regarding our research or information held in our database. We are also able to provide commentary and customised tables or charts for your use.
For more information contact:

Jeff Bresnahan
Founder & Chairman
Tel: 1300 826 395
Jeff.Bresnahan@superratings.com.au

Kirby Rappell
Executive Director
Tel: 1300 826 395
Kirby.Rappell@superratings.com.au

Super funds are off to a positive start in the December quarter, regaining momentum following a rocky September and paving the way for double-digit returns for the 2019 calendar year.

While markets have come under pressure in recent months, super funds have once again proved they are up to the task of navigating the significant uncertainty in markets, geopolitics, and the global economy.

Super fund returns held up well in October, despite weakness from Australian shares and signs of softer economic growth globally. The major financials sector has come under pressure due to constrained lending, lower net interest margins, and continued fallout from the Royal Commission. IT shares also suffered a dip as investors questioned the lofty valuations of Australia’s local tech darlings.

According to SuperRatings’ estimates, the median balanced option returned a modest 0.3% in October, but the year-to-date return for 2019 is sitting at a very healthy 12.5%. The median growth option has fared even better, returning 14.4%, while the median capital stable option has delivered a respectable 7.1% to the end of October.

Over the past five years, the median balanced option has returned an estimated 7.6% p.a., compared to 8.3% p.a. from growth and 4.7% p.a. from capital stable (see table below).

Estimated accumulation returns (% p.a. to end of October 2019)

  YTD 1 yr 3 yrs 5 yrs 7 yrs 10 yrs
SR50 Growth (77-90) Index 14.4% 11.9% 10.1% 8.3% 10.1% 8.5%
SR50 Balanced (60-76) Index 12.5% 10.5% 8.9% 7.6% 9.1% 7.9%
SR50 Capital Stable (20-40) Index 7.1% 6.8% 5.0% 4.7% 5.3% 5.6%

Source: SuperRatings

Estimated pension returns (% p.a. to end of October 2019)

  YTD 1 yr 3 yrs 5 yrs 7 yrs 10 yrs
SRP50 Growth (77-90) Index 16.4% 13.3% 11.2% 9.4% 11.4% 9.5%
SRP50 Balanced (60-76) Index 13.8% 11.7% 9.8% 8.3% 9.9% 8.7%
SRP50 Capital Stable (20-40) Index 8.3% 7.7% 5.9% 5.5% 6.0% 6.4%

Source: SuperRatings

“This year has provided further solid evidence of the ability of super funds to deliver for their members through a challenging market environment,” said SuperRatings Executive Director Kirby Rappell.

“Whether it’s the US-China trade conflict, the weaker economic outlook, falling interest rates, or the rolling Brexit saga, there’s been a lot for funds to take in. This has been a real test of their discipline and ability to manage risks on the downside. Growing wealth in this environment while protecting members’ capital is a tall order, but they have managed it well.”

Shifting asset allocation key to managing risk

One of the most important trends in the superannuation industry is the broadening of members’ investments across different asset classes. Over the past five years, super funds have shifted away from Australian shares and fixed income and moved a higher proportion of funds into international shares and alternatives (see chart below).

Change in asset allocation (2009 to 2019)

Super fund asset allocations have shifted towards alternatives

Source: SuperRatings

The shift to alternatives is significant and has been the subject of debate within the industry. Alternatives include private market assets and hedge funds, which despite the negative connotations can provide an important source of diversification and downside protection when markets take a turn for the worse.

These assets tend to be less liquid, but they can play an important role for funds looking to generate income while managing risks for their members in a world characterised by low yields and growing uncertainty. However, funds should be clear about their alternatives strategy and the risks they could potentially add to members’ portfolios.

“This shift in asset allocation is in part being driven by the low interest rate environment, which has prompted super funds to reach for yield by allocating to alternatives and other less liquid assets,” said Mr Rappell.

“This isn’t necessarily a bad thing, and it may in fact result in a more robust asset allocation, but it’s something members should be aware of. Alternatives can help protect capital under certain market conditions, but they can also be used to boost returns by taking on some additional risk. We generally think the shift to a broader asset allocation is positive, but funds should not be complacent in ensuring risk is appropriately managed.”

A combination of factors has created fertile ground for market volatility, resulting in a bumpy ride for super members, who have experienced six negative monthly returns over the past year.

According to SuperRatings, the median balanced option return for August was an estimated -0.5%, with the negative result driven by a fall in Australian and international shares. The median growth option, which has a higher exposure to growth assets like shares, fared worse, returning an estimated -0.9%.

In contrast, the median capital stable option, which includes a higher allocation to bonds and other defensive assets, performed more favourably with an estimated return of 0.3% (see table below).

Estimated accumulation returns (% p.a. to end of August 2019)

1 month 1 year 3 years 5 years 7 years 10 years
SR50 Growth (77-90) Index -0.9% 5.2% 8.8% 8.0% 10.2% 8.5%
SR50 Balanced (60-76) Index -0.5% 5.3% 8.0% 7.5% 9.2% 8.0%
SR50 Capital Stable (20-40) Index 0.3% 5.3% 4.8% 4.8% 5.4% 5.7%

Source: SuperRatings

Investors were caught off guard in August as trade negotiations between the US and China broke down, while a range of geopolitical and market risks, including further signs of a slowing global economy, added to uncertainty.

In Australia, a disappointing GDP result for the June quarter revealed a domestic economy in a more fragile state than previously acknowledged. Action from the Reserve Bank to lower interest rates is expected to assist in stabilising markets but could be detrimental for savers and retirees who rely on interest income.

Pension products shared a similar fate in August, with the balanced pension option returning an estimated -0.6% over the month while the growth pension option returned an estimated -1.0% and the capital stable pension option was mostly flat with an estimated return of 0.3%. Long-term returns are still holding up well, with the median balanced option for accumulation members delivering 9.2% p.a. over the past seven years (in excess of the typical CPI + 3.0% target) and the median balanced pension option returning 10.2% p.a.

Estimated pension returns (% p.a. to end of August 2019)

1 month 1 year 3 years 5 years 7 years 10 years
SRP50 Growth (77-90) Index -1.0% 5.9% 9.9% 9.2% 11.5% 9.4%
SRP50 Balanced (60-76) Index -0.6% 6.2% 8.7% 8.0% 10.2% 8.8%
SRP50 Capital Stable (20-40) Index 0.3% 6.2% 5.5% 5.5% 6.3% 6.4%

Source: SuperRatings

“There will always be negative months for super members, but the timing of negative returns can have a real impact on those entering the retirement phase,” said SuperRatings Executive Director Kirby Rappell.

“For members shifting their super savings to a pension product, a number of down months in relatively quick succession will mean they begin drawing down on a smaller pool of savings than they might have anticipated. As members get closer to retirement, it’s important that they review their risk tolerance to make sure they can retire even if the market takes a turn for the worse.”

As the chart below shows, down months in the latter part of 2018 took their toll on pension balances, although they were able to recover through 2019 to finish above their starting value by the end of August 2019.

Pension balance over 12 months to end August 2019*

Pension balance over 12 months to end August 2019
Source: SuperRatings
*Assumes a starting balance of $250,000 at the end of August 2018 and annual 5% drawdown applied monthly.

Comparing balanced and capital stable option performance shows that the balanced option suffered a greater drop but was able to bounce back relatively quickly. A starting balance of $250,000 fell to $232,951 over the four months to December 2018, before recovering to $252,091 at the end of August 2019.

In contrast, the capital stable option was able to better withstand the market fall, with a starting balance of $250,000 dropping to only $241,746 in December before rising back to $252,201.

While both performed similarly over the full 12-month period, a member retiring at December 2018 could have been over $8,500 worse off if they were in a balanced option compared to someone in a capital stable option. While a capital stable option is not expected to perform as well over longer periods, it will provide a smoother ride and may be an appropriate choice for those nearing retirement.

“Super fund returns have generally held up well under challenging conditions, but there’s no doubt this has been a challenging year for those entering retirement,” said Mr Rappell.

“Under these market conditions, timing plays a bigger role in determining your retirement outcome. At the same time interest rates are at record lows and moving lower, so the income generated for retirees and savers is less, particularly if someone is relying on interest from a bank account. In the current low rate and low return environment, it’s harder for retirees to generate capital growth and income.”

Super funds have had a convincing finish to what was a bumpy 2019 financial year, with an improvement in sentiment and a rallying share market in June helping funds over the line with solid returns.

A promising 2.0% gain in the September 2018 quarter seemed to vanish before members’ eyes as funds suffered a 4.7% loss in the December quarter. Funds fought back strongly in the final six months, helped by a solid performance in June, bringing the FY19 result to 6.9%.

According to SuperRatings’ data, the median balanced option returned 2.3% in June, driven predominately by a rebound in Australian and international share markets. By comparison, the top 10 funds achieved an average return of 8.5% for the year. The return for the median growth option, with two thirds of the portfolio allocated to local and international shares, was 7.4% over the year, while the median capital stable option returned 5.3%.

While funds have ridden the wave of market fluctuations since the Global Financial Crisis, the FY19 financial year has nevertheless proved a fitting bookend to super performance over the past decade, during which the superannuation system has amassed an additional $1.3 trillion for members.

Median balanced option financial year returns since introduction
of compulsory SG

* Interim return

Source: SuperRatings

Australia’s leading super funds in 2018-19

UniSuper was the highest returning balanced option over the 12 months to 30 June 2019, delivering a 9.9% gain to members. This was followed by QSuper and Media Super, which returned 9.7% and 8.8% respectively. Both UniSuper and QSuper are among the top returning funds over 10 years, narrowly trailing AustralianSuper, which remains on top of the long-term leader board with a return of 9.8% p.a.

Top 10 returning super funds over 1 year

Source: SuperRatings

Top 10 returning super funds over 10 years

Source: SuperRatings

“UniSuper was a standout performer for the 2019 financial year, and they have also delivered consistently strong outcomes for their members over the past 10 years,” said SuperRatings Executive Director Kirby Rappell. “While year-to-year performance can fluctuate, the ability of the fund to provide solid returns over the long term, while protecting their members’ savings against the ups and downs of the market has been key to their success.”

While superannuation continues to deliver for members, SuperRatings warned that the system could become a victim of its own success, as higher account balances mean members will feel more of the bumps as markets move.

“The 4.7% drop we saw in the December quarter was felt more acutely for someone with a $100,000 balance than one with only $10,000,” said Mr Rappell. “Members should enjoy the strength of returns we’ve seen over the past decade, but as more and more workers enter and exit the system, it’s important that we keep talking about how funds manage market pullbacks and other risks for their members. The uncertainty that many consumers and investors feel at the moment reminds us that super is a long-term game, and members must have an understanding of both risk and return, and the effect they have on their retirement savings.”

High returns are not a free lunch – consumers should understand risk

Most consumers can’t define risk, but they know it when they experience it. For superannuation members, risk can mean the likelihood of running out of money in retirement, or not having enough cash to pay for holidays, car repairs, or an inheritance for their kids.

For a young worker with a relatively low super balance, being exposed to riskier assets is less of a problem – in fact, it can help them accumulate wealth over their working life. However, for members approaching retirement (aged 50 and over), an unexpected pullback in the market can mean the difference between living comfortably and having to cut back in order to get by.

While measuring risk can be tricky, it’s essential to understanding the value that members are getting from their fund. The conversation around risk will become increasingly important as a greater number of people begin transitioning to retirement and drawing down on their super.

Risk can be measured as the degree to which returns fluctuate over time. Members want high returns, but they also want consistent returns. Unfortunately, higher returns often mean taking on more risk, which means returns will be less consistent. The table below shows the top 10 funds ranked according to their risk-adjusted return, which measures how much members are being rewarded for taking on risk.

Top 10 funds ranked by risk and return (over 7 years)

Fund Risk/return ranking1 Return % p.a.
QSuper – Balanced 1 9.5%
CareSuper – Balanced 2 10.4%
Hostplus – Balanced* 3 11.1%
Cbus – Growth (Cbus MySuper)* 4 10.7%
BUSSQ Premium Choice – Balanced Growth 5 9.8%
Sunsuper for Life – Balanced 6 10.5%
Catholic Super – Balanced (MySuper) 7 9.7%
CSC PSSap – MySuper Balanced 8 9.4%
HESTA – Core Pool 9 9.9%
Media Super – Balanced 10 9.9%

1 Risk/return ranking determined by Sharpe ratio

* Interim return

Source: SuperRatings

QSuper’s return of 9.5% p.a. over the past seven years is slightly below the average of 10.1% across the top 10 ranking funds, but it has the best return to risk ratio of its peers, meaning it delivered the best return given the level of risk involved. Funds such as CareSuper and Hostplus were able to deliver higher returns, but for a slightly higher level of risk.

High returns are not a free lunch – consumers should understand risk

Following the introduction of MySuper, which provides a low-cost, ‘set-and-forget’ alternative for members, we have seen lifecycle strategies become increasingly popular. Members starting their working life in a lifecycle product are given a higher allocation to riskier growth assets like shares, which is gradually shifted over to safer assets as they age.

This allows members to benefit from higher risk and return earlier on in their working life, and having more certainty as they get closer to retirement. Approximately one third of MySuper products have some sort of age-based strategy, and tend to be offered by retail master trusts.

The chart below shows how a lifecycle product’s asset allocation changes as members age. For those starting out in the workforce, the allocation to growth assets like equities is high (around 90% for the median fund) and is reduced over time to around 50% by the time the member reaches the age of 60.

Lifecycle vs Single Default GAA

Source: SuperRatings

When assessing the performance of lifecycle products, SuperRatings found there are some retail funds that have improved their position. smartMonday MySuper – Aon MySuper High Growth (11.8% p.a.), ANZ Smart Choice Super – MySuper (10.2% p.a.) and Mercer SmartPath – MySuper (9.9% p.a.) have delivered strong returns over the three years to 30 June 2019 for younger members (in the 1995-1999 cohort), in excess of the not-for-profit median across both single default and lifecycle MySuper products.

A world-beating performance from Australian shares has been overshadowed by the re-emergence of geopolitical uncertainty and a wave of risk aversion in global markets, leading to softer performance for super funds in the final stretch of the financial year.

According to estimates from leading superannuation research house SuperRatings, the typical balanced option return was -0.7% in May as funds were dragged down by falls in international shares triggered by the re-emergence of the US-China trade conflict and uncertainty surrounding central bank policy.

The bright side has been the resilience of Australian shares and property, both of which saw a brief boost from the Coalition’s surprise election win, but this was not enough to save super funds from a month of negative performance.

Markets have since recovered following May’s weakness, but members should not expect a bumper end to the financial year. The year-to-date return is sitting at 5.1% for the median balanced option, which is below the 8.5% per annum return achieved over the past ten years.

Estimated median Balanced option returns to 31 May 2019

Period Accumulation returns Pension
returns
Month of May 2019 -0.7% -0.7%
Financial year return to 31 May 2019 5.1% 5.8%
Rolling 1-year return to 31 May 2019 4.8% 7.3%
Rolling 3-year return to 31 May 2019 6.8% 8.1%
Rolling 5-year return to 31 May 2019 6.6% 7.6%
Rolling 7-year return to 31 May 2019 8.7% 10.5%
Rolling 10-year return to 31 May 2019 8.5% 9.7%
Rolling 15-year return to 31 May 2019 7.5% 8.1%
Rolling 20-year return to 31 May 2019 6.8%

Interim results only. Median Balanced Option refers to ‘Balanced’ options with exposure to growth style assets of between 60% and 76%. Approximately 60% to 70% of Australians in our major funds are invested in their fund’s default investment option, which in most cases is the balanced investment option. Returns are net of investment fees, tax and implicit asset-based administration fees.

Members in the median growth option, which includes higher weightings to growth assets like Australian and overseas shares, suffered a larger fall of 1.2% in May, while the median International Shares option fell 4.0% and the median Australian Shares option held firm, returning 1.4%.

“It’s been a disappointing end to the financial year for super, but long-term performance remains robust,” said SuperRatings Executive Director Kirby Rappell. “The median balanced option return over the past 10 years is around 8.5%, indicating that super has delivered solid returns even in a low interest rate environment.”

Downside risks to the Australian economy, including weak inflation, falling home prices, and tighter credit conditions are taking their toll on consumer confidence, while the geopolitical risks in the form of US-China trade negotiations have also contributed to market volatility.

SuperRatings Index return estimates to 31 May 2019


Source: SuperRatings

However, the Australian market has held up reasonably well over the financial year to date, with the S&P/ASX 200 Index returning 7.6% so far to the end of May, outperforming global share performance of 6.3% measured by the MSCI World Ex-Australia Index. Listed property has been the leading asset class so far this financial year, with the S&P/ASX 200 A-REIT Index returning 14.5%. Both property and shares saw a modest boost in May with the negative gearing debate now effectively put to bed following the federal election.

“Labor’s negative gearing proposals were thought to favour developers by limiting tax concessions to new stock, but so far the improvement in sentiment has outweighed any negative impact, which may give some super funds a temporary boost to their property portfolios,” said Mr Rappell.

Long-term super performance steady

The negative performance for super funds in May has been reflected in a slight fall in the Balanced and Growth option indices for the month but long-term performance remains strong. According to SuperRatings’ data, $100,000 invested in the median Balanced option in May 2009 is estimated to have reached an accumulated $217,391 today.

The median Growth option is estimated to be worth $230,873 over the same period, while $100,000 invested in domestic and international shares ten-years ago is now worth $244,382 and $258,181 respectively. In contrast, $100,000 invested in the median Cash option ten years ago would only be worth $129,748.

Growth in $100,000 invested over 10 years to 31 May 2019


Source: SuperRatings

Release ends

Leading research house and managed account provider Lonsec will work with financial advisers seeking to transition from conflicted advice models and introduce a greater degree of independence in their investment decisions.

Lonsec is offering to acquire in-house managed portfolios from advice licensees to enable them to take advantage of best practice governance principles and Lonsec’s experienced team of portfolio construction experts.

With a shift currently taking place in the advice industry in the wake of the Royal Commission into Financial Services, Lonsec said advisers are acutely aware of the need to present a professional, conflict-free advice environment for their clients.

“Advice models have come under a great deal of scrutiny by the Royal Commission as well as the regulators and the community,” said Lonsec CEO Charlie Haynes.

“The Royal Commission may have stopped short of a ban on vertically integrated or conflicted financial advice, but advisers know they need to start moving quickly in this direction to meet community expectations.”

While it is becoming increasingly unpalatable for licensees or advisers to charge portfolio management fees for in-house managed accounts, advisers are also cognisant of regulatory developments.

An empowered ASIC is investigating how platform providers ensure the integrity of managed accounts constructed by advice licensees who might lack the expertise or resources to act as specialist investment managers.

For many advisers, the question is how best to manage conflicts, either by outsourcing the portfolio construction process or introducing a greater degree of independence in their investment decisions.

Lonsec is proposing to acquire the investment management rights from existing managed account providers, enabling them to focus on the provision of advice without conflict.

Licensees have the flexibility to retain their existing branding, investment mandate and platform, or transition to Lonsec’s own professionally managed portfolios incorporating best ideas and insights from Australia’s leading investment product research house.

“An outsourced managed account solution is becoming increasingly popular, not just in order to reduce conflicts but to allow advisers to focus on their clients’ needs and aspirations while leaving the investment process to specialised portfolio managers,” said Mr Haynes.

With Australia’s economic expansion under threat, house prices falling, and a wave of people set to retire over the next decade, financial advisers are under pressure to provide advice and solutions that can withstand Australia’s future retirement challenges.

Lonsec’s Retire program addresses the growing need for the financial services industry to work together to come up with those solutions and strategies.

Lonsec has been running its successful Retire program for more than five years, and it continues to go from strength to strength. The schedule of content and events planned for the next 12 months is the largest yet, with nine Retire Partners now on board to deliver in-depth retirement insights, including:                          

Alliance Bernstein Fidelity      Legg Mason
Allianz Retire+  Invesco  Pendal
Challenger Investors Mutual  Talaria

Lonsec’s Retire Partners will be providing a wealth of content to help advisers understand and deal with a range of issues faced by advisers and their clients.

The program will really kick off on May 7th with the major Lonsec Symposium event at the Westin, Sydney. With more than 600 advisers and wealth managers already registered, along with an impressive line-up of high-profile speakers and industry leaders, this is a must-attend event for all retirement professionals.

Super members are at risk of their first annual loss since 2011, after recording a third consecutive month of negative returns in November, as market volatility continues to test global markets.

The latest data from superannuation research house SuperRatings reveals a negative return of -0.6 percent in the month of November for members invested in the median Balanced option. This follows a decline in October of -3.1 percent and brings the calendar year to date return for 2018 to just 1.8 percent, with ongoing market weakness in December likely to eat away at what is left of super’s gains through 2018.

Interim results only. Median Balanced Option refers to ‘Balanced’ options with exposure to growth style assets of between 60% and 76%. Approximately 60% to 70% of Australians in our major funds are invested in their fund’s default investment option, which in most cases is the balanced investment option. Returns are net of investment fees, tax and implicit asset-based administration fees.

Members invested in the median Growth option are now sitting on an annual return of 1.2 percent, while those with 100 percent exposure to Australian equities suffered a steeper decline in November of -2.4 percent, pushing them well into negative territory for the year to date, with a total return for 2018 of -2.4 percent. Meanwhile, despite suffering heavy losses in October (-5.8%), and smaller losses in November (-0.4%), members invested in the median international equities option have experienced returns year to date of 2.1 percent.

The last time super members experienced an annual loss was 2011, when the median Balanced option returned -1.9 percent, while the median Australian equities option suffered declines of nearly ten percent (-9.6%) and international equities dropped -6.7 percent over the calendar year.

Median balanced option calendar year returns

Source: SuperRatings

*Calendar year return to 30 November 2018

Despite the declines, super members remain well ahead over a ten-year period, with $100,000 invested in the median Balanced option in November 2008 now worth $206,366, while the median Growth option is worth $217,721 over the same period. Those invested in domestic and international shares have performed even better over the last ten years, despite a more volatile 2018 with $100,000 invested in the median Australian Shares option in 2008 now worth $230,482 and the median International Shares option rose to $238,925, over the same period. Meanwhile, $100,000 invested in the median Cash option ten years ago would only be worth $130,549 today.

Growth of $100,000 invested over 10 years to 30 November 2018

Select index

SR50 Balanced (60-76) Index
SR50 Growth (77-90) Index
SR50 Australian Shares Index
SR50 International Shares Index
SR50 Cash Index

Source: SuperRatings

Interim results only

Source: SuperRatings

Interim results

“Heading into 2019, it looks like members will need to get used to some of the volatility we’ve seen in markets over the past two or three months,” said SuperRatings Executive Director Kirby Rappell. “This is certainly a challenging environment for super funds at the moment. Share markets are under pressure globally, and recent data indicate that the economy is weaker than expected, with downside risks including a softening housing market having a real impact on confidence.”

Release ends

Warnings: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to “General Advice” (as defined in the Corporations Act 2001(Cth)) and based solely on consideration of the merits of the superannuation or pension financial product(s) alone, without taking into account the objectives, financial situation or particular needs (‘financial circumstances’) of any particular person. Before making an investment decision based on the rating(s) or advice, the reader must consider whether it is personally appropriate in light of his or her financial circumstances, or should seek independent financial advice on its appropriateness.

If SuperRatings advice relates to the acquisition or possible acquisition of particular financial product(s), the reader should obtain and consider the Product Disclosure Statement for each superannuation or pension financial product before making any decision about whether to acquire a financial product. SuperRatings’ research process relies upon the participation of the superannuation fund or product issuer(s). Should the superannuation fund or product issuer(s) no longer be an active participant in SuperRatings research process, SuperRatings reserves the right to withdraw the rating and document at any time and discontinue future coverage of the superannuation and pension financial product(s).

Copyright © 2018 SuperRatings Pty Ltd (ABN 95 100 192 283 AFSL No. 311880 (SuperRatings)).

This media release is subject to the copyright of SuperRatings. Except for the temporary copy held in a computer’s cache and a single permanent copy for your personal reference or other than as permitted under the Copyright Act 1968 (Cth.), no part of this media release may, in any form or by any means (electronic, mechanical, micro-copying, photocopying, recording or otherwise), be reproduced, stored or transmitted without the prior written permission of SuperRatings. This media release may also contain third party supplied material that is subject to copyright. Any such material is the intellectual property of that third party or its content providers. The same restrictions applying above to SuperRatings copyrighted material, applies to such third party content.

// GLOBAL PARAMETERS
var chartHeight = 376;
var chartWidth = 700;
var startAmt = 100000;
var numAxes = 6;
var dateNum = 10;

// DATA

// SR50 Balanced (60-76) Index
var balancedPrices = [
100000,
99876.8,
98032.1753808,
94443.7076009858,
96559.2466512479,
99509.1316364435,
100514.173865972,
101046.898987461,
104704.796730807,
107966.351148972,
110719.493103271,
109556.163389235,
110991.349129634,
113424.834459301,
110963.515551534,
111892.169213185,
115137.042120367,
115042.399471744,
112139.649648273,
110757.416326709,
112973.56146999,
112529.914294097,
115050.584374285,
116589.846142628,
116383.015755571,
118345.117018195,
119516.733676675,
120819.46607375,
121230.252258401,
121406.036124176,
121096.450732059,
120297.214157228,
118634.345765932,
116455.981908978,
114346.265340715,
117521.546782962,
116333.168901892,
116206.365747789,
118861.56499876,
120995.130090488,
122800.256436308,
123168.657205617,
120465.844191897,
120767.852063286,
122066.106472966,
124067.990619123,
125901.219248511,
126972.764525535,
127650.164224279,
130095.430770159,
133427.695133906,
136029.535189017,
135776.928342171,
138517.44986383,
139473.22026789,
138630.523071031,
142846.693169191,
143476.647086067,
145390.482081548,
147958.950338001,
149120.428098154,
151267.762262767,
149987.885726262,
153125.782283541,
152582.185756435,
153684.744630711,
155304.120784884,
155583.668202297,
157481.788954365,
158846.211173866,
157897.422754524,
159832.613567804,
161024.805032406,
162903.964507134,
166047.522310228,
170969.669014071,
171997.367694514,
171479.999612489,
173140.783408736,
169643.33958388,
173579.065062226,
168514.895839035,
166835.813416895,
171821.201193419,
171265.531428759,
171543.666651799,
167675.356968801,
166845.363951806,
169698.085984654,
172023.289158816,
175954.021316094,
174194.481102934,
178813.073574897,
179326.088282983,
179406.78502271,
178043.293456538,
180119.456301535,
183992.024612018,
183789.633384944,
185811.319352179,
188579.908010526,
191204.563170217,
192109.916776828,
192148.338760183,
192244.412929563,
193391.91983034,
195200.134280753,
199628.834927315,
202131.980888469,
203324.559575711,
205032.485876147,
204635.748015976,
203162.370630261,
206453.601034471,
207213.556739879,
209990.218400194,
212195.115693396,
214380.725385038,
214209.22080473,
207632.997726024,
206366.436439896
];

// SR50 Growth (77-90) Index
var growthPrices = [
100000,
99590,
97160.90031,
92633.202355554,
95348.3741497976,
99105.1000912997,
100576.810827655,
101532.290530518,
106020.017771967,
109879.146418867,
113076.629579656,
111345.65253405,
112976.866343674,
116015.944048319,
112790.700803776,
113903.606648607,
118095.259373275,
117847.259328591,
113793.313607688,
111801.930619553,
114518.717533609,
113614.019665093,
116664.556093101,
118492.68968708,
118220.156500799,
120486.08224045,
121799.380536871,
123297.512917475,
123630.416202352,
123679.868368833,
123036.733053315,
121855.580416003,
119570.788283203,
116565.01780734,
113961.188439559,
118010.799270759,
116279.580845457,
116002.951722626,
119100.23053362,
121613.245397879,
123768.353719575,
124015.890427014,
120207.734479672,
120514.745033533,
121999.727721836,
124220.122766374,
126207.644730636,
127412.549114879,
128183.012799377,
130990.220779683,
135120.604421308,
138066.233597692,
137658.938208579,
140903.97235897,
142020.91814786,
140927.357078121,
146189.443664061,
146836.478141718,
149141.664012065,
152184.153957911,
153591.248645406,
156017.990374003,
154176.97808759,
158011.359532629,
157173.899327106,
158431.290521722,
160278.124075334,
160366.277043576,
162749.159554166,
164236.361374172,
163046.633172378,
165198.033497087,
166635.751982612,
168982.816549287,
172653.123324738,
178977.061925876,
180086.540732755,
179492.435234878,
181603.086780805,
177140.009320079,
182046.787578246,
175390.428837235,
173198.048476769,
179339.304879659,
178665.527111226,
178929.058763715,
173790.037266962,
172434.47497628,
175830.571960938,
178681.137193568,
183546.803240486,
180922.083954147,
186679.748353904,
187074.015982428,
187025.750886304,
185005.872776732,
187891.964392049,
193124.567708403,
192583.81891882,
195068.150182872,
198364.801920963,
201460.483019742,
202322.532426583,
202160.674400642,
202081.831737625,
203387.280370651,
205628.811587615,
211192.715971553,
214384.260295315,
215927.826969442,
217882.837514823,
217258.82106818,
214825.522272217,
219293.893135479,
220280.715654589,
223405.617886865,
226332.231481183,
229297.183713586,
228861.51906453,
219432.424479072,
217720.851568135
];

// SR50 Australian Shares Index
var australianPrices = [
100000,
100539.9,
96518.304,
92120.157923328,
99359.6968942065,
104652.687307458,
106201.547079608,
109886.740763271,
117370.027809249,
124708.70616805,
131817.102419629,
129708.028780915,
131433.145563701,
136163.161606248,
128932.897724956,
130927.618585659,
137759.421723459,
135940.997356709,
126789.993178645,
123460.487957773,
128608.790305613,
126962.597789701,
132669.566560348,
135046.341845276,
133777.716509982,
138164.154056628,
138468.115195552,
141389.792426178,
142322.965056191,
141812.87954943,
139313.569360251,
136959.170038062,
132368.709535897,
129238.189555373,
122587.592320853,
130595.626789213,
126337.948164631,
124721.959469657,
130161.957175845,
133090.601212302,
134780.718757097,
135943.472017814,
127788.902848826,
127784.941392837,
131797.388552573,
135207.64598137,
137776.591255016,
141138.064528456,
141843.754851099,
146269.280002453,
153143.936162568,
160405.409039652,
157742.679249594,
162995.510468606,
157877.451439891,
154549.079008636,
162037.136435683,
165989.060156213,
170148.082047487,
175856.039755934,
174097.479358375,
175594.717680857,
170894.398277976,
178294.125723412,
178877.86069103,
181552.084708361,
182607.265424686,
180105.545888368,
186697.408867882,
188072.808679012,
179936.590902749,
186144.403288894,
181528.02208733,
184704.762473858,
189453.152507536,
201191.48038375,
201679.369723681,
198829.640229485,
199929.565799235,
190332.946640871,
197995.560739686,
184719.95839209,
180792.812076674,
188349.951621479,
188331.116626317,
192858.408338897,
183549.904402012,
180625.954424888,
187997.480250922,
192861.539057454,
199071.680615104,
193427.202182944,
204413.867266935,
202775.694534658,
203473.648475246,
199302.438681503,
204149.473990238,
211692.797054177,
210041.593237154,
213339.246250978,
219590.086166131,
221494.151803278,
217181.217679364,
218145.502285861,
218248.46696294,
219384.013736548,
219983.151478062,
228346.250947804,
232212.15297635,
236838.051275792,
236317.007562985,
237043.682361241,
230098.302468057,
238036.693903205,
240429.676787014,
247185.750704729,
249978.949687692,
252878.70550407,
250501.645672331,
236198.001704441,
230482.010063194
];

// SR50 International Shares Index
var internationalPrices = [
100000,
98702,
97981.4754,
90025.37959752,
90831.6468971954,
95981.8012762664,
97810.2545905792,
96921.844048133,
101967.401405591,
104618.553842136,
105696.12494671,
102378.217888508,
104778.987097993,
108404.340051584,
105163.050284042,
105688.865535462,
109673.335766149,
109107.092333588,
107962.886256286,
104481.083174521,
106041.194708482,
103835.537858546,
106066.548224975,
108351.964139578,
108385.76995239,
109617.790999439,
112730.936263823,
113520.052817669,
112680.004426819,
112112.547924525,
112272.19619277,
110643.351170405,
107589.594678102,
101874.973356774,
100784.911141857,
102970.129585235,
102456.823489252,
102477.31485395,
104936.770410445,
108523.404286304,
112398.558006559,
110982.785769908,
108027.869098785,
107353.667167739,
106671.971381224,
110063.393367347,
112710.087787652,
112335.777586109,
113432.848790015,
116049.290880205,
120737.682231766,
122379.714710118,
122846.226182593,
125974.873871011,
135050.607684174,
136185.032788721,
144037.05322422,
142323.012290852,
143777.695799477,
146975.311754057,
152988.806634475,
157949.009723177,
155355.171085503,
158860.139100363,
154864.806601989,
155404.975047417,
158388.439758377,
159502.702432078,
159454.851621348,
161870.592623411,
165480.306838913,
166098.541265264,
173141.119414911,
175988.425123689,
180742.048474705,
188845.979702165,
190254.581864764,
189694.852884918,
194642.474037862,
190350.996770275,
198769.269602441,
191056.823172596,
186109.406736542,
196766.96191331,
194030.917307905,
190130.895870017,
182818.841876647,
180381.501076748,
181033.039058637,
183957.627804629,
192217.509250685,
186771.794996104,
191893.824702077,
194237.807770813,
192927.285281783,
191190.939714247,
196181.214431729,
202352.683075322,
200754.096879027,
203865.785380652,
207514.982938966,
214466.734867421,
219682.994792867,
216103.040709722,
214381.779990469,
216062.961909154,
221459.350445797,
229720.670054827,
235096.13373411,
233779.595385199,
238934.669243038,
237047.085356018,
234961.071004885,
239660.292424983,
240133.38184223,
243039.956296048,
248411.139330191,
254223.959990517,
254706.985514499,
239908.509656107,
238924.884766517
];

// SR50 Cash Index
var cashPrices = [
100000,
100325.7,
100650.2536395,
100881.749222871,
101079.275687849,
101295.282099994,
101515.092862151,
101743.400305998,
101977.410126702,
102201.760428981,
102447.04465401,
102672.428152249,
102929.10922263,
103207.017817531,
103506.318169202,
103796.135860075,
104095.691508168,
104408.394965458,
104732.060989851,
105081.970805618,
105449.757703438,
105808.286879629,
106162.003982668,
106542.594766946,
106904.839589154,
107298.463208521,
107695.467522392,
108050.862565216,
108439.845670451,
108819.385130298,
109211.134916767,
109604.295002467,
109987.910034976,
110383.206583641,
110762.483281463,
111161.228221276,
111528.060274406,
111903.57525335,
112275.095123191,
112611.920408561,
112985.791984317,
113358.645097866,
113732.728626689,
114032.983030263,
114348.626327291,
114667.201600239,
114980.47239501,
115290.919670477,
115568.194332284,
115869.480614909,
116151.159322284,
116404.601151925,
116666.045886112,
116946.161062285,
117215.137232728,
117461.289020917,
117731.449985665,
117978.332836285,
118216.413111948,
118452.845938172,
118686.671856054,
118915.618446064,
119147.979564508,
119366.37781105,
119600.216545182,
119827.456956617,
120062.79808208,
120302.923678244,
120543.529525601,
120775.09364582,
121002.03004678,
121238.831019582,
121467.366216053,
121721.233011445,
121976.48243707,
122197.991729176,
122423.324825924,
122628.506318333,
122834.399580441,
123025.898409387,
123220.771432467,
123417.924666759,
123601.570538664,
123799.333051525,
123983.29886044,
124177.084756559,
124376.885685932,
124563.451014461,
124766.115749262,
124978.218146035,
125189.431334702,
125377.215481704,
125574.559218872,
125768.069614629,
125938.359580887,
126114.6732843,
126283.540831828,
126460.211505452,
126637.255801559,
126801.884234101,
126979.406872029,
127152.733762409,
127339.266822839,
127514.230975453,
127681.402132262,
127847.387955034,
128013.589559376,
128192.808584759,
128355.998030087,
128521.192199552,
128704.334898436,
128858.780100314,
129026.296514445,
129207.555176141,
129396.456621809,
129573.859163837,
129781.1773385,
129975.849104507,
130157.815293254,
130353.052016193,
130548.581594218
];

// Dates
var dates = [“Nov 2008″,”Dec 2008″,”Jan 2009″,”Feb 2009″,”Mar 2009″,”Apr 2009″,”May 2009″,”Jun 2009″,”Jul 2009″,”Aug 2009″,”Sep 2009″,”Oct 2009″,”Nov 2009″,”Dec 2009″,”Jan 2010″,”Feb 2010″,”Mar 2010″,”Apr 2010″,”May 2010″,”Jun 2010″,”Jul 2010″,”Aug 2010″,”Sep 2010″,”Oct 2010″,”Nov 2010″,”Dec 2010″,”Jan 2011″,”Feb 2011″,”Mar 2011″,”Apr 2011″,”May 2011″,”Jun 2011″,”Jul 2011″,”Aug 2011″,”Sep 2011″,”Oct 2011″,”Nov 2011″,”Dec 2011″,”Jan 2012″,”Feb 2012″,”Mar 2012″,”Apr 2012″,”May 2012″,”Jun 2012″,”Jul 2012″,”Aug 2012″,”Sep 2012″,”Oct 2012″,”Nov 2012″,”Dec 2012″,”Jan 2013″,”Feb 2013″,”Mar 2013″,”Apr 2013″,”May 2013″,”Jun 2013″,”Jul 2013″,”Aug 2013″,”Sep 2013″,”Oct 2013″,”Nov 2013″,”Dec 2013″,”Jan 2014″,”Feb 2014″,”Mar 2014″,”Apr 2014″,”May 2014″,”Jun 2014″,”Jul 2014″,”Aug 2014″,”Sep 2014″,”Oct 2014″,”Nov 2014″,”Dec 2014″,”Jan 2015″,”Feb 2015″,”Mar 2015″,”Apr 2015″,”May 2015″,”Jun 2015″,”Jul 2015″,”Aug 2015″,”Sep 2015″,”Oct 2015″,”Nov 2015″,”Dec 2015″,”Jan 2016″,”Feb 2016″,”Mar 2016″,”Apr 2016″,”May 2016″,”Jun 2016″,”Jul 2016″,”Aug 2016″,”Sep 2016″,”Oct 2016″,”Nov 2016″,”Dec 2016″,”Jan 2017″,”Feb 2017″,”Mar 2017″,”Apr 2017″,”May 2017″,”Jun 2017″,”Jul 2017″,”Aug 2017″,”Sep 2017″,”Oct 2017″,”Nov 2017″,”Dec 2017″,”Jan 2018″,”Feb 2018″,”Mar 2018″,”Apr 2018″,”May 2018″,”Jun 2018″,”Jul 2018″,”Aug 2018″,”Sep 2018″,”Oct 2018″,”Nov 2018”];

// All prices
var allPrices = balancedPrices.concat(growthPrices, australianPrices, internationalPrices, cashPrices);

// FUNCTIONS
var balancedPoints = calcpoints(balancedPrices, chartHeight, chartWidth);
createchart(balancedPoints, balancedPrices);
createaxes(balancedPrices);
createDates();
function removeChart(){
var lines = document.getElementsByClassName(“line”);
while(lines.length > 0){
lines[0].parentNode.removeChild(lines[0]);
};
var labels = document.getElementsByClassName(“price-label”);
while(labels.length > 0){
labels[0].parentNode.removeChild(labels[0]);
};
var polyline = document.getElementById(“polyline-id”);
polyline.setAttribute(“points”, “”);
var polylineFill = document.getElementById(“polyline-fill”);
polylineFill.setAttribute(“points”, “”);
};
function report(portfolio){
if(portfolio == “balanced”){
removeChart();
createaxes(balancedPrices);
createDates();
var balancedPoints = calcpoints(balancedPrices, chartHeight, chartWidth);
createchart(balancedPoints, balancedPrices);
} else if(portfolio == “growth”){
removeChart();
createaxes(growthPrices);
createDates();
var growthPoints = calcpoints(growthPrices, chartHeight, chartWidth);
createchart(growthPoints, growthPrices);
} else if(portfolio == “australian”){
removeChart();
createaxes(australianPrices);
createDates();
var australianPoints = calcpoints(australianPrices, chartHeight, chartWidth);
createchart(australianPoints, australianPrices);
} else if(portfolio == “international”){
removeChart();
createaxes(internationalPrices);
createDates();
var internationalPoints = calcpoints(internationalPrices, chartHeight, chartWidth);
createchart(internationalPoints, internationalPrices);
} else if(portfolio == “cash”){
removeChart();
createaxes(cashPrices);
createDates();
var cashPoints = calcpoints(cashPrices, chartHeight, chartWidth);
createchart(cashPoints, cashPrices);
};
};
function numberWithCommas(num){
var parts = num.toString().split(“.”);
parts[0] = parts[0].replace(/B(?=(d{3})+(?!d))/g, “,”);
return parts.join(“.”);
};
function dataconvert(prices, dates){
var data = [];
for(var i = 0; i < prices.length; i++){
var datum = {
price: prices[i],
date: dates[i]
};
data.push(datum);
};
return data;
};

function calcdollar(data, startAmt){
var oneData = [];
for(var i = 0; i < data.length; i++){
oneData.push(data[i] + 1);
};
var dollarAmts = [];
var start = startAmt;
var accum = start;
for(var i = 0; i < oneData.length; i++){
accum = oneData[i] * accum;
dollarAmts.push(accum);
};
return dollarAmts;
};

function calcpoints(prices, chartHeight, chartWidth){
var points = [];
var xPoint = 0;
var step = chartWidth / prices.length;
var max = Math.max.apply(null, allPrices);
var min = Math.min.apply(null, allPrices);
var range = max – min;
var firstInterval = range / numAxes;
var interval = 50000;

var minAxis = 0 // startAmt – (interval * Math.ceil((startAmt – min) / interval));
var maxAxis = 300000 // minAxis + (numAxes * interval);
var axisRange = maxAxis – minAxis;

for(var i = 0; i < prices.length; i++){
if(prices[i] === maxAxis){
var yPoint = 0;
} else if(prices[i] === minAxis){
var yPoint = chartHeight;
} else {
var yPoint = ((maxAxis – prices[i]) / axisRange) * chartHeight;
}
var xandy = {
x: xPoint,
y: yPoint
};
points.push(xandy);
var xPoint = xPoint + step;
};
return points;
};

function createaxes(prices){
var max = Math.max.apply(null, allPrices);
var min = Math.min.apply(null, allPrices);
var range = max – min;
var firstInterval = range / numAxes;
var interval = 50000;

var minAxis = 0 // startAmt – (interval * Math.ceil((startAmt – min) / interval));
var maxAxis = 300000 // minAxis + (numAxes * interval);
var axisRange = maxAxis – minAxis;

var step = chartHeight / numAxes;
var accum = step;
var d = "";

// DRAW AXES

for(var i = 1; i minAxis; i = i – interval){
accum = accum + step;
var div = document.createElement(“div”);
div.style.position = “absolute”;
div.className = “price-label”;
div.style.left = chartWidth + 5 + “px”;
div.style.top = accum – 12 + “px”;
var commaNum = numberWithCommas(priceLabel);
div.innerHTML = “$” + commaNum;
document.getElementById(“main-chart”).appendChild(div);
priceLabel = priceLabel – interval;
};
};

// DRAW DATES
function createDates() {
var step = chartWidth / dateNum;
var left = 0 – 25;
for(var i = 0; i <= dateNum * 12; i += 12) {
var date = dates[i];
var div = document.createElement("div");
div.className = "price-label";
div.style.position = "absolute";
div.style.top = chartHeight + 5 + "px";
div.style.left = left + "px";
div.style.zIndex = "4";
div.innerHTML = date;
document.getElementById("main-chart").appendChild(div);
var step
left += step;
};
};

function createchart(points, prices){

// DRAW CHART LINE

var pairs = [];
for(var i = 0; i < points.length; i++){
var xPoint = points[i].x;
var yPoint = points[i].y;
pairs.push(xPoint);
pairs.push(yPoint);

var chart = document.getElementById("chart");
var point = chart.createSVGPoint();
point.x = xPoint;
point.y = yPoint;
var polyline = document.getElementById("polyline-id");
polyline.points.appendItem(point);
};

// DRAW CHART FILL

for(var i = 0; i < points.length; i++){
var xPoint = points[i].x;
var yPoint = points[i].y;
pairs.push(xPoint);
pairs.push(yPoint);

var chart = document.getElementById("chart");
var point = chart.createSVGPoint();
point.x = xPoint;
point.y = yPoint;
var polyline = document.getElementById("polyline-fill");
polyline.points.appendItem(point);
};

var num = points.length – 1;

var chart = document.getElementById("chart");
var point = chart.createSVGPoint();
point.x = points[num].x;
point.y = chartHeight;
var polyline = document.getElementById("polyline-fill");
polyline.points.appendItem(point);

var chart = document.getElementById("chart");
var point = chart.createSVGPoint();
point.x = 0;
point.y = chartHeight;
var polyline = document.getElementById("polyline-fill");
polyline.points.appendItem(point);

var chart = document.getElementById("chart");
var point = chart.createSVGPoint();
point.x = 0;
point.y = points[0].y;
var polyline = document.getElementById("polyline-fill");
polyline.points.appendItem(point);

var left = 0;
var step = chartWidth / points.length;

// CREATE INTERACTIVE ELEMENTS

for(var i = 0; i < points.length; i++){
var top = points[i].y;
var div = document.createElement("div");
div.id = left;
div.className = "line";
div.style.position = "absolute";
div.style.height = chartHeight + "px";
div.style.width = step + "px";
div.style.left = left – (step / 2) + "px";
div.style.top = "0px";
document.getElementById("chart-container").appendChild(div);

var div = document.createElement("div");
div.className = "cursor";
div.style.height = chartHeight – points[i].y + "px";
div.style.top = chartHeight – (chartHeight – points[i].y) + "px";
div.style.left = "2px";
div.style.position = "absolute";
div.style.zIndex = "2";
document.getElementById(left).appendChild(div);

var div = document.createElement("div");
div.className = "dot";
div.style.position = "absolute";
div.style.top = points[i].y – 6 + "px";
div.style.left = 0 – (step / 2) + "px";
div.style.zIndex = "3";
document.getElementById(left).appendChild(div);

var div = document.createElement("div");
div.className = "label-chart";
div.style.position = "absolute";
div.style.top = chartHeight – 26 + "px";
div.style.left = "-50px";
div.style.zIndex = "4";
var num = Math.round(prices[i]);
var commaNum = numberWithCommas(num);
div.innerHTML = dates[i] + ": $" + commaNum;
document.getElementById(left).appendChild(div);

var left = left + step;
};
};

Australia’s superannuation funds are participating in the global share market rally, with big gains from US and European markets showing up in members’ accounts and providing a promising start to the 2018-19 financial year.

According to SuperRatings’ data, the median balanced option grew at an estimated 1.1% in July, while the median growth option delivered 1.3%. The results compare favourably to the average monthly return over the past five years, which is around 0.7% for both balanced and growth options, meaning super funds have entered the new financial year in good shape.

Australian shares continued to build through July, but it has been the significant outperformance of global shares that has provided the kicker to super returns. Super funds with global exposure have been able to take advantage of the strong momentum on the back of the US and European earnings season, which saw the SR50 International Shares Index jump 2.2% in July, compared to a 1.1% rise in the SR50 Australian Shares Index.


Interim results only. Median Balanced Option refers to ‘Balanced’ options with exposure to growth style assets of between 60% and 76%. Approximately 60% to 70% of Australians in our major funds are invested in their fund’s default investment option, which in most cases is the balanced investment option. Returns are net of investment fees, tax and implicit asset-based administration fees.

“Super funds have ridden a wave of positive sentiment over the past few months, and this has been reinforced by strong earnings growth, especially in the US and Europe,” said SuperRatings CEO Kirby Rappell. “Despite the imminent threats to the market rally, from trade wars to Brexit to the emerging economic crisis in Turkey, nothing seems to be putting a dent in confidence.”

Locally, share performance has been less impressive, in part due to the financial sector, which took a beating during the Banking Royal Commission. But the great strength of the super system is that it can diversify across different asset classes, including global shares, fixed income and property.

Best and worst performing balanced options to 31 July 2018*


Source: SuperRatings
*Interim results only

Spectre of GFC still haunting super returns

Over the last ten years the median balanced option has returned 6.7% p.a., meaning an account balance of $100,000 at the end of July 2008 has now accumulated to $183,158. Growth members have enjoyed some extra upside, with the same starting balance growing to $187,571.

Ten-year returns remain impacted by the Global Financial Crisis (GFC), which began hitting super returns hard in September 2008. Over the six-month period between September 2008 to February 2009, the median balanced option fell 18.5%, while the median growth option experienced a drawdown of 23.2%.

Growth in $100,000 invested for 10 years to 31 July 2018*


Source: SuperRatings
*Interim results only

“The ten-year return figure includes the six months of severe pain for super members at the start of the GFC,” said Mr Rappell. “Once these acute negative returns fall out of the 10-year return period, we will start to see a noticeable lift, which will provide a truer picture of the health and stability of super funds over the long term.”

Top 20 super funds

SuperRatings’ data shows HOSTPLUS was the best performing balanced option for the 2017-18 financial year, returning 12.5%, followed by AustSafe on 11.4% and AustralianSuper on 11.1%.

Over 10 years, the results show UniSuper narrowly moving ahead of both CareSuper and Rest in the balanced option rankings, while Equip has moved up into third sport. Each has returned well over 7.0% p.a. over the past 10 years, compared to the median balanced option return of 6.5% p.a.


Source: SuperRatings
*Interim results only


Source: SuperRatings

Release ends

Australia’s superannuation fund members have reason to expect a pickup in performance in the second half of 2018, following a volatile first half that saw super funds scrambling to recover from a global selloff earlier in the year.

SuperRatings’ data shows the median balanced option grew at an estimated 1.3% in June, bringing the June quarter return to 3.3%, ending the financial year on a high in what is historically the weakest quarter for superannuation.

According to SuperRatings’ analysis, super funds have historically recorded higher returns in the second half of the calendar year. Over the past 10 years, balanced options have delivered an average return of 1.9% in the September quarter and 1.7% in the December quarter. In contrast, the average return for the June quarter is only 0.9%, reflecting the historic seasonal impact on equity markets.

The results are even more exaggerated for higher growth options. For example, options with a pure Australian shares focus have an average return of 2.3% in the December quarter and -0.6% in the June quarter (see chart below).

Average option returns for each FY quarter (2008-2018)

Source: SuperRatings

“Luckily this year investors forgot the old adage of ‘sell in May and go away’”, said SuperRatings CEO Kirby Rappell. “Instead we saw a strong recovery which ended up producing a very positive June quarter for superannuation.”

“If history is a guide, members can anticipate a bit of a kick in coming periods, although this is conditional on the management of some downside risks to the Australian economy, as well as the broader global growth picture.”

According to SuperRatings, Australian shares are set to move higher through the rest of 2018, but will likely continue to underperform global markets.

“With the Australian share market dominated by the banks, it is sensible to expect softer growth in the wake of the Royal Commission into Financial Services,” said Mr Rappell. “The Australian economy has a bit of extra baggage, including low wage growth and a cooling property sector which could impact sentiment, but overall our outlook is positive.”

Despite the comeback in the June quarter, the financial-year return for the median balanced option is expected to be in single-digit territory at around 9.2%, bringing the 5-year return to 8.9% p.a. and the 10-year return to 6.5% p.a.

Interim results only. Median Balanced Option refers to ‘Balanced’ options with exposure to growth style assets of between 60% and 76%. Approximately 60% to 70% of Australians in our major funds are invested in their fund’s default investment option, which in most cases is the balanced investment option. Returns are net of investment fees, tax and implicit asset-based administration fees

Super funds add $150 billion over past financial year

Super funds continue to amass wealth for members, with the median balanced option adding more than 85% over the past 10 years, while members in growth options have seen their savings grow by over 90%. This is despite the significant drawdowns members experienced during the Global Financial Crisis, with balanced options taking nearly two years to fully recover.

Growth in $100,000 invested for 10 years to 30 June 2018

Select index

SR50 Balanced (60-76) Index
SR50 Growth (77-90) Index
SR50 Australian Shares Index
SR50 International Shares Index
SR50 Cash Index

Source: SuperRatings

Interim results only

Source: SuperRatings

Interim results

Over the last ten years the median balanced option has returned 6.5% p.a., meaning an account balance of $100,000 in 2008 has now accumulated to $185,412. Growth members have experienced a modest bonus, with a similar starting balance growing to $190,207.

Share focused options have delivered the highest returns, with the median Australian share option growing to $196,190 and the median international share option growing to $211,000, more than doubling in size.

Best and worst performing balanced options to 30 June 2018

Source: SuperRatings

Interim results

SuperRatings’ data shows HOSTPLUS was the best performing balanced option for the 2017-18 financial year, returning 12.5%, followed by AustSafe on 11.4% and AustralianSuper on 11.1%.

Over 10 years, the results show UniSuper narrowly moving ahead of both CareSuper and Rest in the balanced option rankings, while Equip has moved up into third sport. Each has returned well over 7.0% p.a. over the past 10 years, compared to the median balanced option return of 6.5% p.a.

Source: SuperRatings

*Interim results. Includes public offer funds only

Source: SuperRatings

*Interim results

Release ends

Warnings: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to “General Advice” (as defined in the Corporations Act 2001(Cth)) and based solely on consideration of the merits of the superannuation or pension financial product(s) alone, without taking into account the objectives, financial situation or particular needs (‘financial circumstances’) of any particular person. Before making an investment decision based on the rating(s) or advice, the reader must consider whether it is personally appropriate in light of his or her financial circumstances, or should seek independent financial advice on its appropriateness. If SuperRatings advice relates to the acquisition or possible acquisition of particular financial product(s), the reader should obtain and consider the Product Disclosure Statement for each superannuation or pension financial product before making any decision about whether to acquire a financial product. SuperRatings research process relies upon the participation of the superannuation fund or product issuer(s). Should the superannuation fund or product issuer(s) no longer be an active participant in SuperRatings research process, SuperRatings reserves the right to withdraw the rating and document at any time and discontinue future coverage of the superannuation and pension financial product(s). Copyright © 2018 SuperRatings Pty Ltd (ABN 95 100 192 283 AFSL No. 311880 (SuperRatings)). This media release is subject to the copyright of SuperRatings. Except for the temporary copy held in a computer’s cache and a single permanent copy for your personal reference or other than as permitted under the Copyright Act 1968 (Cth.), no part of this media release may, in any form or by any means (electronic, mechanical, micro-copying, photocopying, recording or otherwise), be reproduced, stored or transmitted without the prior written permission of SuperRatings. This media release may also contain third party supplied material that is subject to copyright. Any such material is the intellectual property of that third party or its content providers. The same restrictions applying above to SuperRatings copyrighted material, applies to such third party content.

// GLOBAL PARAMETERS

var chartHeight = 376;
var chartWidth = 700;
var startAmt = 100000;
var numAxes = 8;
var dateNum = 10;

// DATA

// SR50 Balanced (60-76) Index

var balancedPrices = [
100000,
102333.7,
97657.04991,
91165.6881454324,
88330.4352441095,
88221.6121478887,
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106674.769362463,
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// SR50 Growth (77-90) Index

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// SR50 Australian Shares Index

var australianPrices = [
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182628.231830954,
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190828.208119422,
196190.480767578
];

// SR50 International Shares Index

var internationalPrices = [
100000,
104478.9,
98084.79132,
91630.812051144,
86801.8682560487,
85675.1800060852,
85049.7511920408,
78143.7113952471,
78843.5664745029,
83313.9966936072,
84901.1283306204,
84129.9713819934,
88509.6094321972,
90810.8592774343,
91746.2111279919,
88866.2058144731,
90950.1183408225,
94096.992435415,
91283.4923615961,
91739.909823404,
95198.5044237464,
94706.9945454066,
93713.8022936089,
90691.53216964,
92045.7381279971,
90131.1867749347,
92067.745453981,
94051.5291652779,
94080.8732423775,
95150.2905285236,
97852.5587795336,
98537.5266909904,
97808.348993477,
97315.7861479459,
97454.3638274206,
96040.4959170124,
93389.7782297028,
88429.3801590322,
87483.1857913305,
89379.9962256581,
88934.4369444732,
88952.2238318621,
91087.0772038268,
94200.3424155764,
97564.0482425518,
96335.1314908886,
93770.2086149437,
93184.9887429778,
92593.2640644599,
95537.0817088613,
97834.4619127143,
97509.5536647022,
98461.8319657916,
100732.952581915,
104802.563866224,
106227.878734805,
106632.819408542,
109348.544053238,
117226.45056101,
118211.152745722,
125026.853179583,
123539.033626745,
124801.726089444,
127577.316477674,
132797.142381358,
137102.691331646,
134851.190934598,
137893.568653273,
134425.545401643,
134894.421704004,
137484.124811878,
138451.325629929,
138409.79023224,
140506.698554259,
143639.997932019,
144176.636964293,
150289.726371579,
152761.24092176,
156887.474800297,
163921.838507918,
165144.531501349,
164658.676289672,
168953.303884659,
165228.22144061,
172535.439533821,
165840.891944469,
161546.442047567,
170797.399051421,
168422.461217611,
165037.169747137,
158690.170273002,
156574.512922922,
157140.0600636,
159678.657733927,
166848.389144838,
162121.407431976,
166567.42490939,
168602.046004658,
167464.488000265,
165957.307608263,
170288.959294146,
175645.909375621,
174258.306691554,
176959.310445273,
180126.882102243,
186161.132652668,
190688.943721046,
187581.476694168,
186087.390232299,
187546.687546501,
192230.853614662,
199401.833377904,
204067.836278947,
202925.056395785,
207399.756814368,
205761.298735534,
203950.599306662,
208029.611292795,
208440.261745487,
210999.763727431
];

// SR50 Cash Index

var cashPrices = [
100000,
100535,
100972.32725,
101547.869515325,
101948.272764824,
102280.318289219,
102611.195118885,
102847.200867658,
103048.575686957,
103268.7904932,
103492.88376857,
103725.639264166,
103964.208234473,
104192.929492589,
104442.992523371,
104672.767106923,
104934.44902469,
105217.772037057,
105522.903575964,
105818.367705977,
106123.759515176,
106442.55528876,
106772.527210155,
107129.254223564,
107504.206613347,
107869.720915832,
108230.329392854,
108618.335123727,
108987.637463148,
109388.929944287,
109793.668985081,
110155.988092732,
110552.549649866,
110939.48357364,
111338.865714505,
111739.685631077,
112130.774530786,
112533.77253445,
112920.438576878,
113326.952155755,
113700.931097869,
114083.762132876,
114462.520223157,
114805.907783826,
115187.063397668,
115567.180706881,
115948.552403213,
116254.656581558,
116576.449470976,
116901.231459202,
117220.605623548,
117537.101258732,
117819.777987259,
118126.934148472,
118414.100725387,
118672.48029317,
118939.018683908,
119224.591267768,
119498.807827684,
119749.755324122,
120025.179761368,
120276.872563327,
120519.59129216,
120760.630474744,
120999.011959302,
121232.419053371,
121469.307200201,
121691.960440299,
121930.354990802,
122162.022665284,
122401.948877799,
122646.752775555,
122892.046281106,
123128.121902012,
123359.479643066,
123600.894144727,
123833.88183019,
124092.694643215,
124352.917023882,
124578.741921197,
124808.4651213,
125017.644108843,
125227.548733302,
125422.778481777,
125621.448162892,
125822.442479953,
126009.666274363,
126211.281740402,
126398.831705068,
126596.393079023,
126800.086675487,
126990.286805501,
127196.900002133,
127413.134732137,
127628.462929834,
127819.905624229,
128021.094155681,
128218.374661775,
128391.982341067,
128571.731116345,
128743.88866431,
128924.001364551,
129104.494966461,
129272.330809918,
129453.312073052,
129630.015844031,
129820.183077275,
129998.556008823,
130168.98411575,
130338.203795101,
130507.643460035,
130690.354160879,
130856.722981725,
131025.135584203,
131211.84640241,
131369.300618093,
131540.080708897,
131724.870783733,
131917.452544819,
132101.023981894
];

// Dates

var dates = [“Jul 2008″,”Aug 2008″,”Sep 2008″,”Oct 2008″,”Nov 2008″,”Dec 2008″,”Jan 2009″,”Feb 2009″,”Mar 2009″,”Apr 2009″,”May 2009″,”Jun 2009″,”Jul 2009″,”Aug 2009″,”Sep 2009″,”Oct 2009″,”Nov 2009″,”Dec 2009″,”Jan 2010″,”Feb 2010″,”Mar 2010″,”Apr 2010″,”May 2010″,”Jun 2010″,”Jul 2010″,”Aug 2010″,”Sep 2010″,”Oct 2010″,”Nov 2010″,”Dec 2010″,”Jan 2011″,”Feb 2011″,”Mar 2011″,”Apr 2011″,”May 2011″,”Jun 2011″,”Jul 2011″,”Aug 2011″,”Sep 2011″,”Oct 2011″,”Nov 2011″,”Dec 2011″,”Jan 2012″,”Feb 2012″,”Mar 2012″,”Apr 2012″,”May 2012″,”Jun 2012″,”Jul 2012″,”Aug 2012″,”Sep 2012″,”Oct 2012″,”Nov 2012″,”Dec 2012″,”Jan 2013″,”Feb 2013″,”Mar 2013″,”Apr 2013″,”May 2013″,”Jun 2013″,”Jul 2013″,”Aug 2013″,”Sep 2013″,”Oct 2013″,”Nov 2013″,”Dec 2013″,”Jan 2014″,”Feb 2014″,”Mar 2014″,”Apr 2014″,”May 2014″,”Jun 2014″,”Jul 2014″,”Aug 2014″,”Sep 2014″,”Oct 2014″,”Nov 2014″,”Dec 2014″,”Jan 2015″,”Feb 2015″,”Mar 2015″,”Apr 2015″,”May 2015″,”Jun 2015″,”Jul 2015″,”Aug 2015″,”Sep 2015″,”Oct 2015″,”Nov 2015″,”Dec 2015″,”Jan 2016″,”Feb 2016″,”Mar 2016″,”Apr 2016″,”May 2016″,”Jun 2016″,”Jul 2016″,”Aug 2016″,”Sep 2016″,”Oct 2016″,”Nov 2016″,”Dec 2016″,”Jan 2017″,”Feb 2017″,”Mar 2017″,”Apr 2017″,”May 2017″,”Jun 2017″,”Jul 2017″,”Aug 2017″,”Sep 2017″,”Oct 2017″,”Nov 2017″,”Dec 2017″,”Jan 2018″,”Feb 2018″,”Mar 2018″,”Apr 2018″,”May 2018″,”Jun 2018”];

// All prices

var allPrices = balancedPrices.concat(growthPrices, australianPrices, internationalPrices, cashPrices);

// FUNCTIONS

var balancedPoints = calcpoints(balancedPrices, chartHeight, chartWidth);
createchart(balancedPoints, balancedPrices);
createaxes(balancedPrices);
createDates();

function removeChart(){
var lines = document.getElementsByClassName(“line”);
while(lines.length > 0){
lines[0].parentNode.removeChild(lines[0]);
};
var labels = document.getElementsByClassName(“price-label”);
while(labels.length > 0){
labels[0].parentNode.removeChild(labels[0]);
};
var polyline = document.getElementById(“polyline-id”);
polyline.setAttribute(“points”, “”);
var polylineFill = document.getElementById(“polyline-fill”);
polylineFill.setAttribute(“points”, “”);
};

function report(portfolio){
if(portfolio == “balanced”){
removeChart();
createaxes(balancedPrices);
createDates();
var balancedPoints = calcpoints(balancedPrices, chartHeight, chartWidth);
createchart(balancedPoints, balancedPrices);
} else if(portfolio == “growth”){
removeChart();
createaxes(growthPrices);
createDates();
var growthPoints = calcpoints(growthPrices, chartHeight, chartWidth);
createchart(growthPoints, growthPrices);
} else if(portfolio == “australian”){
removeChart();
createaxes(australianPrices);
createDates();
var australianPoints = calcpoints(australianPrices, chartHeight, chartWidth);
createchart(australianPoints, australianPrices);
} else if(portfolio == “international”){
removeChart();
createaxes(internationalPrices);
createDates();
var internationalPoints = calcpoints(internationalPrices, chartHeight, chartWidth);
createchart(internationalPoints, internationalPrices);
} else if(portfolio == “cash”){
removeChart();
createaxes(cashPrices);
createDates();
var cashPoints = calcpoints(cashPrices, chartHeight, chartWidth);
createchart(cashPoints, cashPrices);
};
};

function numberWithCommas(num){
var parts = num.toString().split(“.”);
parts[0] = parts[0].replace(/B(?=(d{3})+(?!d))/g, “,”);
return parts.join(“.”);
};

function dataconvert(prices, dates){
var data = [];
for(var i = 0; i < prices.length; i++){
var datum = {
price: prices[i],
date: dates[i]
};
data.push(datum);
};
return data;
};

function calcdollar(data, startAmt){
var oneData = [];
for(var i = 0; i < data.length; i++){
oneData.push(data[i] + 1);
};
var dollarAmts = [];
var start = startAmt;
var accum = start;
for(var i = 0; i < oneData.length; i++){
accum = oneData[i] * accum;
dollarAmts.push(accum);
};
return dollarAmts;
};

function calcpoints(prices, chartHeight, chartWidth){
var points = [];
var xPoint = 0;
var step = chartWidth / prices.length;
var max = Math.max.apply(null, allPrices);
var min = Math.min.apply(null, allPrices);
var range = max – min;
var firstInterval = range / numAxes;
var interval = 20000;

var minAxis = 60000 // startAmt – (interval * Math.ceil((startAmt – min) / interval));
var maxAxis = 220000 // minAxis + (numAxes * interval);
var axisRange = maxAxis – minAxis;

for(var i = 0; i < prices.length; i++){
if(prices[i] === maxAxis){
var yPoint = 0;
} else if(prices[i] === minAxis){
var yPoint = chartHeight;
} else {
var yPoint = ((maxAxis – prices[i]) / axisRange) * chartHeight;
}
var xandy = {
x: xPoint,
y: yPoint
};
points.push(xandy);
var xPoint = xPoint + step;
};
return points;
};

function createaxes(prices){
var max = Math.max.apply(null, allPrices);
var min = Math.min.apply(null, allPrices);
var range = max – min;
var firstInterval = range / numAxes;
var interval = 20000;

var minAxis = 60000 // startAmt – (interval * Math.ceil((startAmt – min) / interval));
var maxAxis = 220000 // minAxis + (numAxes * interval);
var axisRange = maxAxis – minAxis;

var step = chartHeight / numAxes;
var accum = step;
var d = "";

// DRAW AXES

for(var i = 1; i minAxis; i = i – interval){
accum = accum + step;
var div = document.createElement(“div”);
div.style.position = “absolute”;
div.className = “price-label”;
div.style.left = chartWidth + 5 + “px”;
div.style.top = accum – 12 + “px”;
var commaNum = numberWithCommas(priceLabel);
div.innerHTML = “$” + commaNum;
document.getElementById(“main-chart”).appendChild(div);
priceLabel = priceLabel – interval;
};
};

// DRAW DATES

function createDates() {
var step = chartWidth / dateNum;
var stepFirst = (chartWidth / dateNum) * (11/12);
var left = 0 – 25 + stepFirst;

var div = document.createElement(“div”);
div.className = “price-label”;
div.style.position = “absolute”;
div.style.top = chartHeight + 5 + “px”;
div.style.left = left + “px”;
div.style.zIndex = “4”;
div.innerHTML = dates[11];
document.getElementById(“main-chart”).appendChild(div);
left += step;

for(var i = 23; i < dateNum * 12; i += 12) {
var date = dates[i];
var div = document.createElement("div");
div.className = "price-label";
div.style.position = "absolute";
div.style.top = chartHeight + 5 + "px";
div.style.left = left + "px";
div.style.zIndex = "4";
div.innerHTML = date;
document.getElementById("main-chart").appendChild(div);
var step
left += step;
};
};

function createchart(points, prices){

// DRAW CHART LINE

var pairs = [];
for(var i = 0; i < points.length; i++){
var xPoint = points[i].x;
var yPoint = points[i].y;
pairs.push(xPoint);
pairs.push(yPoint);

var chart = document.getElementById("chart");
var point = chart.createSVGPoint();
point.x = xPoint;
point.y = yPoint;
var polyline = document.getElementById("polyline-id");
polyline.points.appendItem(point);
};

// DRAW CHART FILL

for(var i = 0; i < points.length; i++){
var xPoint = points[i].x;
var yPoint = points[i].y;
pairs.push(xPoint);
pairs.push(yPoint);

var chart = document.getElementById("chart");
var point = chart.createSVGPoint();
point.x = xPoint;
point.y = yPoint;
var polyline = document.getElementById("polyline-fill");
polyline.points.appendItem(point);
};

var num = points.length – 1;

var chart = document.getElementById("chart");
var point = chart.createSVGPoint();
point.x = points[num].x;
point.y = chartHeight;
var polyline = document.getElementById("polyline-fill");
polyline.points.appendItem(point);

var chart = document.getElementById("chart");
var point = chart.createSVGPoint();
point.x = 0;
point.y = chartHeight;
var polyline = document.getElementById("polyline-fill");
polyline.points.appendItem(point);

var chart = document.getElementById("chart");
var point = chart.createSVGPoint();
point.x = 0;
point.y = points[0].y;
var polyline = document.getElementById("polyline-fill");
polyline.points.appendItem(point);

var left = 0;
var step = chartWidth / points.length;

// CREATE INTERACTIVE ELEMENTS

for(var i = 0; i < points.length; i++){
var top = points[i].y;
var div = document.createElement("div");
div.id = left;
div.className = "line";
div.style.position = "absolute";
div.style.height = chartHeight + "px";
div.style.width = step + "px";
div.style.left = left – (step / 2) + "px";
div.style.top = "0px";
document.getElementById("chart-container").appendChild(div);

var div = document.createElement("div");
div.className = "cursor";
div.style.height = chartHeight – points[i].y + "px";
div.style.top = chartHeight – (chartHeight – points[i].y) + "px";
div.style.left = "2px";
div.style.position = "absolute";
div.style.zIndex = "2";
document.getElementById(left).appendChild(div);

var div = document.createElement("div");
div.className = "dot";
div.style.position = "absolute";
div.style.top = points[i].y – 7 + "px";
div.style.left = 0 – (step / 2) + "px";
div.style.zIndex = "3";
document.getElementById(left).appendChild(div);

var div = document.createElement("div");
div.className = "label-chart";
div.style.position = "absolute";
div.style.top = chartHeight – 26 + "px";
div.style.left = "-50px";
div.style.zIndex = "4";
var num = Math.round(prices[i]);
var commaNum = numberWithCommas(num);
div.innerHTML = dates[i] + ": $" + commaNum;
document.getElementById(left).appendChild(div);

var left = left + step;
};
};

Important information: Any express or implied rating or advice is limited to general advice, it doesn’t consider any personal needs, goals or objectives.  Before making any decision about financial products, consider whether it is personally appropriate for you in light of your personal circumstances. Obtain and consider the Product Disclosure Statement for each financial product and seek professional personal advice before making any decisions regarding a financial product.